Using Bayesian methods, we estimate a small open economy model in which consumers face limits to credit determined by … ; Credit and credit aggregates ; Transmission of monetary policy …

-linearities in the credit channel. …

-level data in order to estimate the effects of bank financial distress on consumer credit and consumption expenditures …-mortgage liabilities compared to a matched sample of households. The reduced access to credit, however, does not result in lower levels of …, where even temporary adverse credit supply shocks are associated with significant real effects. …

-sector small open economy model wherein heterogeneous firms face collateralized credit constraints for investment loans. The model …. In response to a sudden tightening of credit availability, the model generates a large decline in external debt, an … endogenous fall in measured TFP. Furthermore, the subsequent recovery is driven by the traded sector, since the credit crunch is …

This paper proposes a theoretical framework to analyze the relationship between credit shocks, firm defaults and … volatility, and to study the impact of credit shocks on business cycle dynamics. Firms are identical ex ante but differ ex post … economy. A positive credit shock, defined as a rise in the loan-to-deposit ratio, increases output, consumption, hours and …