This Paper examines the consequences of interactions between the bank lending channel and the traditional interest rate … develop a small open-economy credit-augmented model. Under two different exchange rate arrangements, namely a fixed rate … system with sterilized intervention and a pure floating rate system, we establish that the bank lending channel can generate …

What can history can tell us about the relationship between the banking system, financial crises, the global economy … ever before as measured by importance of credit in the economy. I term this long-run evolution “The Great Leveraging” and …

, the now infamous credit to GDP chart. We compare the conclusions reached in the literature after the crisis with the … results that could have been drawn from an ex ante analysis. We show that, even though credit affects the business cycle in …

This paper studies German bank lending during the Asian and Russian crises, using a bank level data set from the … Deutsche Bundesbank. Our aim is to gain more insight into the pattern of German bank lending during financial crises in …

. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank … stock prices and CDS spreads. Overall, bank stock prices reflect a negative capitalization of government debt and they … valuation in countries running large fiscal deficits. Furthermore, the change in bank CDS spreads in 2008 relative to 2007 …

This paper investigates the growth impact of banking crises on industries with different levels of dependence on … external sources of finance to analyze the mechanisms linking financial shocks and real activity. If the banking system is the … key element allowing credit constraints to be relaxed, then a sudden loss of these intermediaries in a system where such …

interest payment burden. The ‘credit channel’ variables are quantitatively as significant as the traditional ones (durability …

the effect is weak and on average negative. The response of equities to central bank talk depends critically on the …

particular, high-MVC firms employ substantially more external finance on the margin. Linking firms to their main bank, we find … that shocks to bank finance affect firms' trade-offs and have real effects in high-MVC firms, making investment more …

This paper discusses a number of issues that the newly constituted board of the European Central Bank (ECB) will face …