Credit, Intermediation and Poverty Reduction
The purpose of this essay is to show how credit markets influence development and to argue that the impact of improvements in credit markets is quantitatively significant. The essay first establishes the fact that access to credit is limited, emphasizing the magnitudes. It then goes on to the potential importance of financial sector development, again quantifying the impact. Toward the end of the essay there is a discussion of the merits of different interventions.