MACROECONOMICS OF MICROFINANCE HOW DO THE strongCHANNELSstrong WORK.pdf

MACROECONOMICS OF MICROFINANCE: HOW DO THE CHANNELS WORK? Nargiza Maksudova CERGE-EI Charles University Center for Economic Research and Graduate Education Academy of Sciences of the Czech Republic Economics Institute WORKING PAPER SERIES (ISSN 1211-3298) 423 Electronic Version Working Paper Series 423 (ISSN 1211-3298) Macroeconomics of Microfinance: How Do the Channels Work? Nargiza Maksudova CERGE-EI Prague, October 2010 EVROPSKÝ SOCIÁLNÍ FOND PRAHA EU: INVESTUJEME DO VAŠÍ BUDOUCNOSTI ISBN 978-80-7343-222-5 (Univerzita Karlova. Centrum pro ekonomický výzkum a doktorské studium) ISBN 978-80-7344-212-5 (Národohospodářský ústav AV ČR, v.v.i.) Macroeconomics of Microfinance: * How Do the Channels Work? Nargiza Maksudova† CERGE-EI‡ Abstract Recent changes in the microfinance landscape are characterized by increasing patterns of its integration with national financial systems and entry of commercial banks. Microfinance is no longer perceived as an isolated marginal sector of informal intermediation but rather constitutes particular