, (ii) credit supply and (iii) housing demand shocks on the housing market and the broader economy. We find that … clearcut for housing demand shocks. We also find that credit supply shocks matter more in the euro area. JEL Classification: E …

monetary transmission via private sector balance sheets, credit risk spreads and asset markets in an integrated setup and to … house price inflation, strong private debt growth and low credit risk spreads. The results suggest that (i) monetary policy … contributed discernibly, but at a late stage to the unsustainable developments in house and credit markets that were observable …

, operates mainly through the credit channel, both the bank lending and the non-financial borrower balance-sheet channel. Our …, the impact of credit frictions of borrowers have not been significantly reduced, especially in distressed countries. Since … reducing credit availability problems stemming from deteriorated firm net worth and risk conditions, especially for small firms …