Using a unique data set on trade credit defaults among French firms, we investigate whether and how trade credit is … on trade credit, especially when the shocks are unexpected, firms have little liquidity, are likely to be credit … constrained or are close to their debt capacity. We estimate that credit constrained firms pass more than one fourth of the …

, each other in a trade credit chain, and to quantify the effects of financial contagion across firms. I develop a …

-2009, we show that firms use the trade credit channel to manage growth. In countries where the trade credit channel is more … financial market imperfections, and therefore more likely to be financially constrained, rely more on the trade credit channel … the trade credit channel for growth. JEL Classification: C23, E44, G32, L25 …

This paper investigates whether output and inflation respond asymmetrically to credit shocks in the euro area. The … effects related to credit conditions in the economy. Consistent with this finding, the impulse responses show some signs of …

, (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 …

macroprudential policy is represented by a convex dependence of bank capital requirements on the quantity of uncollateralized credit …