PKT: Thoughts on Microcredit?

["Eric Miller" <ewmiller@xxxxxxxx>]

Hi folks,

I'm looking for some post-Keynesian/soft-currency macro thoughts on
"microcredit."  I'm unable to locate published stuff, but perhaps it has
come up informally on this list before or elsewhere.... (I can't imagine it
has eluded the attention of PKTers)

Microcredit proponents typically ignore how the macrocredit environment
might limit its effectiveness.  Participants in microcredit typically join
by contributing some of their "savings" in the national currency to a group
fund, which is lent out in a cycle among participants.  As this is basically
a form of savings circle, a high liquidity preference would seem to limit
its potential expansion.  And yet under these circumstances, one would want
its greatest expansion (I think).

Some systems (e.g. Grameen) obtain their loanable funds from the central
bank, multilateral institutions, or the money markets.  In this case, macro
variables would seem to have a direct influence.

Cheers,
- Eric