Inefficient debt markets hinder economic progress from "summary" of House of Debt by Atif Mian,Amir Sufi
The presence of inefficient debt markets can have severe consequences for the overall economy. When borrowers are unable to access credit or are forced to pay exorbitant interest rates due to market distortions, it hampers their ability to invest in productive activities. This can hinder economic progress by limiting the potential for growth and innovation. Furthermore, inefficient debt markets can exacerbate inequality within society. Those who are already financially disadvantaged may find it even more difficult to access credit, perpetuating a cycle of poverty and limiting their chances for upward mobility. This can lead to a widening wealth gap and create social unrest, further destabilizing the economy. I...
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