Credit is an important macroeconomic variable that helps to drive economic activity and is also dependent on economic … relationships of credit with other key macroeconomic variables. At short horizons, shocks to the interest rate, the exchange rate …, and past shocks to credit are found to be important for credit growth. Over longer horizons, shocks to output, inflation …

Historical experience shows that disruptions in credit markets can have a material impact on activity and inflation …. However, it is hard to measure such effects owing to the difficulty in isolating credit supply shocks. This paper employs … survey data to identify the impact of credit supply shocks in Australia over the past three decades, using a structural …