Hirschbühl, Dominik; Krustev, Georgi; Stoevsky, Grigor - 2020
order to investigate the role played by financial factors in driving the business cycle in the euro area. In the model … the flow of credit from banks to the real sector. In this novel application to the euro area, we introduce capital … economic activity. Our results suggest that financial factors, as captured by this model, played a smaller role in the euro …