This is because the financial markets would provide more loans to such households – and if this is not sustainable, it could lead to yet another financial crisis. Thus, politics must enable banks and markets to support the economy, not to fix it. Finally, let’s turn to capital liberalisation in emerging markets.
In some cases, the consumer adherence to particular service provider can be attributed to lack of information. Many a times, even with alternate services available, clearly at lower price, including the switching cost, customers tend to stay with the same service provider.