Thursday, October 8, 2009

Consumer Financial Protection Agency Will Increase Rates, Reduce Credit And Jobs

Under plausible yet conservative assumptions the CFPA [Consumer Financial Protection Agency Act of 2009] would:

• increase the interest rates consumers pay by at least 160 basis points;
• reduce consumer borrowing by at least 2.1 percent; and,
• reduce the net new jobs created in the economy by 4.3 percent.
Read "Evans and Wright on The Effect of the CFPA Act of 2009 on Consumer Credit" on the Truth and the Market blog by Joshua Wright, Assistant Professor of Law at George Mason University School of Law.

Evans and Wright paper available (ungated) here.

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