The term Credit Crunch (also known as a Credit Squeeze or Credit Crisis) is a money market situation in which loans are hard to get. A Credit Crunch is the reduction in the general availability of loans or credit or a sudden tightening of the conditions required to obtain loans from the banks. Credit crunch usually occurs when a government tries to control inflation by imposing restrictions on lending to consumers and small businesses. Very often a credit crunch comes with a flight to quality by lenders and investors, as they look for safe investments.

Editor: Giovanni AVERSA