Crowding-out during the British Industrial Revolution has long been one of the leading explanations for slow growth … wartime financing on private credit markets. Whenever public borrowing rose above trend, private lending declined markedly. We … conclude that there is considerable evidence that government borrowing, especially during wartime, crowded out private credit …

include incomplete information about credit risk. Austerity is defined as the shortfall of consumption from the level desired … sovereign is not a reliable measure of austerity suffered; and that austerity may actually be associated with higher growth. Our …

leverage episodes have been associated with slower economic growth and a higher incidence of default or, more generally …

This paper compares the behavior of Euro-Area (EA) banks’ credit and reserves with those of US banks following … respective major crisis triggers (Lehman’s collapse in the US and the 2009 admission by Papandreou, that Greece’s deficit was … substantially higher than previously believed, in the EA). The paper shows that, although the behavior of banks’ credit following …

We provide evidence on the real effects of credit supply shocks utilizing a new firm-level database from six Latin … exporters only when the currency crisis occurs simultaneously with a banking crisis. These findings suggest that the key factor … hindering investment during financial crises is the decline in credit supply. …

. Quantitative goals take three forms: exchange rates, money growth rates, and inflation targets. We analyse the effects on inflation …

account for 12% of GDP variance and real house prices for 9%). Shocks to the term spread or to leverage (credit-to-GDP ratio …

, the now infamous credit to GDP chart. We compare the conclusions reached in the literature after the crisis with the …Much has been written about why economists failed to predict the latest financial and real crisis. Reading the recent … literature, it seems that the crisis was so obvious that economists must have been blind when looking at data not to see it …

We study a dynamic economy where credit is limited by insufficient collateral and, as a result, investment and output … are too low. In this environment, changes in investor sentiment or market expectations can give rise to credit bubbles …, that is, expansions in credit that are backed not by expectations of future profits (i.e. fundamental collateral), but …