NOTES ON MICROFINANCE: ITS IMPLICATIONS ON WAGE INEQUALITY, MIGRATION AND MACROECONOMIC STABILIZATION
This paper presents an extensive study as on why traditional banking ecosystem may not desirably propitious for credit needs of micro enterprises and thus the warranty behind having institutional setup to cater the credit needs of this vulnerable but crucial sector of less-developed economy in as much as issues unemployment, migration and income equality are concerned. The chapter begins with developing a micro-foundation in line with optimal portfolio choice theoretic approach for the aversion of tradition banking enterprises towards the cater these micro enterprising. There it proceeds to examining the importance of MFIs in enable dissemination of affordable credit to micro units in general equilibrium approach (Jones, 1965). Besides, the chapter considers the relevance MFIs as counter-recessionary tools in line with Keynesian tradition.