Biddle's law theories

Biddle’s Law theories, developed by economist John Biddle, suggest that economic activity is closely linked to the availability of credit and financial resources. Essentially, when banks and lenders are willing to lend more money, businesses and consumers increase spending and investment, stimulating growth. Conversely, when lending slows down, economic activity contracts. Biddle emphasized that credit conditions significantly influence economic fluctuations, making policies that affect credit accessibility crucial for managing economic stability. His ideas highlight the importance of financial markets and credit flow in driving broader economic cycles.