How much impact does consumer lending have on economic outcomes? A research paper published by Princeton University notes it was deregulating the banking industry and allowing interstate banking competition that increased loan growth that made an economic difference in the 1980s and that one would be able to predict recessions including the 2008 one using data from that era (perhaps).
Predict Recessions using data from the 1980s?
The paper is not designed to make a political statement about deregulation, Princeton University Professor Atif Mian said. The goal of the study conducted with Emil Verner from Princeton and Amir Sufi from the University of Chicago was to show how loosening credit policy in the 1980s boosted economic growth.
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