The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen … during tight- money periods. The resulting increase in the external finance premium--the difference in cost between internal … components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components …

standard money channel, the significance of the credit variables is studied in a model that includes money (M2). In most cases …This paper empirically tests the importance of the credit channel in the transmission of monetary policy. Three credit … of short-term debt of small and large firms. In order to determine the marginal effect of the credit channel over the …

This paper studies the limitations of monetary policy transmission within a credit channel frame- work. We show that …, under certain circumstances, the credit channel transmission mechanism fails in that liquidity injections by the central … bank into the banking sector are hoarded and not lent out. We use the term 'credit traps' to describe such situations and …

The crisis of the advanced economies in 2008-09 has focused new attention on money and credit fluctuations, financial … crises, and policy responses. We study the behavior of money, credit, and macroeconomic indicators over the long run based on … half of the twentieth century as shown by a decoupling of money and credit aggregates. We show for the first time how …

What are the stylized facts that characterize the dynamics of credit booms and the associated fluctuations in macro … credit booms to data for 61 emerging and industrial countries over the 1960-2010 period. We identify 70 credit boom events …, half of them in each group of countries. Event analysis shows a systematic relationship between credit booms and a boom …

Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This … paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of …

This paper unveils a new resource for macroeconomic research: a long-run dataset covering disaggregated bank credit for …

beyond other better-known early warning indicators, such as credit booms. This predictive power, however, only holds in … the short-term popularity benefits of weak credit booms rather than implementing politically costly corrective policies …