Abstract:
An equilibrium model of a credit market is proposed and examined. The credit price or the interest rate in the model is determined by the consistent interaction of two macroscopic factors: supply and demand. Methods for computing an equilibrium interest rate are suggested. The methods are interpreted as market-balancing dynamics. The convergence of the methods is proved.
Key words:problem of credit market equilibrium, linear optimization problems, variational inequalities, saddle points, extraproximal method.
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