L'offre de crédit

Abstract

The supply of loanable funds What are the factors which determine the supply of loanable funds ? In what respects does the latter differ from the supply of savings ? The supply of funds depends not only on the volume of saving but also upon the extent to which savings are mobilized and the successive links between credits granted and received. These two factors are decisive for a divergence between the supply of saving and the supply of loanable funds. This conclusion does not imply abandoning the real factors of saving and investment in the classical concept of the supply of loanable funds. But it is necessary to consider the ways in which savings are transformed in order to become négociable. It follows that the rate of interest can be conceived of as the price of credit although changes in the volume of credit need not be accompanied by interest changes.