User:Stanjourdan/Credit policy

Credit policy (also called credit guidance or credit control) refers to any means employed by the government or the central bank to influence the allocation of credit. The use of credit policies was very widespread in Western countries and East-Asia during the post-WWII era (1950-1980) including in the United States, France , Germany  , Japan. The use of credit policy to support industrial development is often recognized as a key factor of success of the rapid development of Asian emerging economies.

However with the development of neoliberalism, the financialization of the economy and the development of shadow banking, credit guidance policies have been gradually abandoned in most countries, to the exception of China and some other emerging economies.

Today, the re-introduction of credit policies is being proposed and debated in the context of the fight against climate change and as one public policy that could further support the development of sustainable finance.

Definition and scope
difference / overlap with monetary policy and macroprudential policy

Aikman, D., Bush, O. and Taylor, A. M. (2016) Monetary versus Macroprudential Policies: Causal Impacts of Interest Rates and Credit Controls in the Era of the UK Radcliffe Report. Bank of England Staff Working Paper No. 610.

History
France

UK

Japan

USA

Debate
Green credit guidance