A Financial Accelerator is a financial theory and process of financial impact that leads the widespread economic bust or boom in the real economy and financial markets. The Financial Accelerator such as, the credit, when become harder to obtain for people or organisation in an economic downturn, which can make the downturn more severe and prolonged that a small change in financial markets can produce a large change in economic conditions and create a feedback loop.
Related Definitions in the Project: The Commercial Definitions
