ESL General English Grammar Questions

Re: wider economy

Akavall — Mon, 26 May 2008 03:36:13 GMT

I think "wider economy" means everybody who borrows from commercial banks, which is pretty much everybody.

The central bank usually lends money to commercial banks; therefore, they can lower the interest rate, but if commercial banks don't lower the interest rate they are lending money at, they are not "passing on" lower interest rate.

Re: wider economy

RayH — Mon, 26 May 2008 02:33:35 GMT

Englishsz
Does 'wider economy' refer to other economies other than UK?

I would not take it to mean economies outside the UK. Having said that, I'm not sure exactly what the writer means by "wider economy". Perhaps additional context would help, or maybe someone who is versed in matters economic can provide some enlightenment.

wider economy

Englishsz — Mon, 26 May 2008 02:12:58 GMT

The other obvious example of a developed European economy being overloaded with debt on the household side is the UK. The credit channel has already been kicking in. Commercial banks are reluctant to pass on lower interest rates to the wider economy and new mortgage approvals are contracting.

Does 'wider economy' refer to other economies other than UK?