housing market including non-convex adjustment costs from buying and selling a home, credit constraints from minimum … how consumer behavior responds to house price and income declines as well as tightening credit. These experiments are … for many households and tightening credit standards. In the short run, relatively few households adjust their housing …

key element allowing credit constraints to be relaxed, then a sudden loss of these intermediaries in a system where such … located in a country at the 75th percentile of private credit to GDP would experience a 1.6 percent greater contraction in … and private credit to GDP. This effect is sizeable compared with an overall mean decline in growth of 3.5 percent between …

This paper shows that the sovereign debt crisis and the resulting credit crunch in the periphery of the Eurozone lead …-specific macroeconomic shocks or a change in the demand for credit of borrowing firms. Thus, the high interdependence of bank and sovereign … health and the resulting credit crunch is one important contributor to the severe economic downturn in the southern European …