Stabilization programs supported by use of Fund resources typically contain limitations on credit expansion by the domestic banking system and on foreign borrowing by the public sector. This paper analyzes some of the implications of credit policies for output and growth and how they relate to...

The use of direct credit controls as instruments for achieving balance of trade and payments objectives is a well-known proposition; the present paper raises some questions related to the implementation of such a policy. In particular, the paper investigates with the help of a simple model the...