conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and … credit spreads to monetary policy shocks …

implies that firms do not perfectly hedge against exchange rate risk and that this risk translates into credit risk for banks …

This paper examines the effects of Islamic banking on the causal linkages between credit and GDP by comparing two sets … analysis provides evidence of long-run causality running from credit to GDP in countries with Islamic banks only. This is …

We study the role of labour and credit market imperfections in the determination of equilibrium unemployment. In the … credit market, loan contracts are negotiated between financiers and firms, both of which have bargaining power, while firms … and organized labour bargain over the base wage. The sequential labour and credit market negotiations are assumed to take …

credit constraints on firm-level innovation. We find that access to bank credit helps firms to adopt existing products and … acquiring external know-how. We find no evidence that bank credit also stimulates firm innovation through in-house R&D. This …We exploit historical and contemporaneous variation in local credit markets across Russia to identify the impact of …

We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our …

Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … lending and risk-taking shocks, in contrast, have only a temporary effect on real GDP and tend to lead to a (moderate) rise in …

In U.S. data 1981–2012, unsecured firm credit moves procyclically and tends to lead GDP, while secured firm credit is … acyclical; similarly, shocks to unsecured firm credit explain a far larger fraction of output fluctuations than shocks to … secured credit. In this paper we develop a tractable dynamic general equilibrium model in which unsecured firm credit arises …