components of bank balance sheets and a decoupling of bank assets from deposits since the mid-1980s, marking a shift from credit … contraction in credit and to liquidity spirals. Subsequent measures by policymakers can be interpreted as attempts to avoid …We identify the origin of the contradicting perspectives on credit creation offered by Austrian, Mainstream and Post …

We explore the structural drivers of bank and nonbank credit cycles using an estimated medium-scale macro model that … potentially drive bank and nonbank credit growth. We find that sectoral shocks affecting the balance sheets of entrepreneurs who … borrow from the financial sector are important for the business cycle frequency fluctuations in bank and nonbank credit …