Your English writing platform
Discover LudwigExact(33)
The credit contraction these losses will spawn has hardly started.
The story is really that the credit contraction seems to be coming to an end".
The credit contraction squeezes out small businesses and their lenders, while state-owned enterprises and big companies get bailed out.
Clarke said that the regulator had been carefully watching the banking sector as the months-long credit contraction unfolded.
"We do think this decision has prevented a credit contraction that would have been much more serious," Mr. Draghi said Thursday.
It also lowered its economic outlook for Europe and the rest of the world, and a credit contraction could exacerbate the slowdown.
Similar(27)
This reduction in foreign lending may have led to further credit contractions and declines in output in borrower countries.
As a consequence, private firms hold cash and issued equity for hedging the negative effect of credit contractions.
Plus, organic growth makes firms less vulnerable to credit contractions in the marketplace because it doesn't require heavy borrowing.
The distinction matters, because it will determine the path for interest rates.Let's assume stagnation is the problem: the normal cyclical recovery of the economy is being smothered by headwinds to demand: deleveraging, tight credit, fiscal contraction, post-crisis risk aversion, etc.
Moreover, consumption will fall further due to reduced access to cheap credit and contraction of housing equity withdrawal.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com