Date of Award

Spring 2012

Degree Name

Bachelor of Science



First Advisor

Dr. Miguel D. Ramirez


The financial crisis of the late 2000’s has had a devastating effect on the US economy. The economics that explains the amplification of such crises pertains to the financial accelerator model, which states that the supply of and demand for credit depends on interest rates or the credit rationing model, which suggests that credit is always rationed and interest rates have little or no effect on it. In this paper, we look at the factors that affect the cost of credit intermediation for large and small firms on a monthly and a quarterly basis. In addition, we also look at the impact of the current recession on the cost of credit intermediation for small as well as large firms.


Senior thesis completed at Trinity College for the degree of Bachelor of Science in Environmental Science.

Included in

Economics Commons