Bank Credits. The Effects of Inflation and Population Growth

Research Paper (postgraduate) from the year 2018 in the subject Economics - Finance, grade: 60, University of Sheffield, language: English, abstract: In the following paper it will be a further examination between the economic growth which represented by GDP, with inflation and gross capital formation. In the first sector it will be a literature review in which will be demonstrated the academic findings about the relationship of the variables. In the second part there are empirical tests which have been made with the use of the E-views program in order to test the relationship of the variables. To conclude, there is a comparison between the academic findings and the empirical findings.

To continue with, in the following text will be examined how the population growth rate and inflation can affect the bank credit. It is also easily understood that there are and many other factors that should be taken into account before to be able to conclude whether the inflation and population growth rate have a positive or negative impact on the bank credit. Further, there are plenty factors that can influence the bank credit such as interest rates, banking regulations, especially after the economic crisis of 2008, retail banking, etc. In this project will be examined how these variables interact in the example of the United States of America. The data that will be used are from 32 observations, more precisely from the year 1984 to 2015.