Measuring The Effects Of Financial Liberalization On The Supply Of Credit To The Private Sector: The Case Of Lebanon

Abstract

The purpose of this paper is to build a systematic analysis of financial liberalization. An integrated model of portfolio decision-making and consumption-saving decision is presented in order to detect the effect of financial liberalization on the supply of credit to the private sector. Moreover, the crowding out of the private sector credit by the Lebanese government sector is illustrated through the identification of the gap between the demand for money of the public and private sectors.