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Because of scarcity, we all have limited incomes. The limited nature of our income requires us to make choices about which goods we will and will not buy. When more of one good or service is bought, we must buy less of some other goods if we are to stay within our budget.
Establishing title is an issue in many emerging markets where no central land registry exists. It is a very real problem in Japan, Eastern Europe, much of Asia and the countries that comprised the former Soviet Union.
Real estate is the most common type of collateral provided. It has some clear advantages over many other sorts of collateral. It can’t move for a start. Land registries exist in most developed countries that enable clear ownership to be established. The bank has to establish that no other party already has a claim to [...]
