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Small businesses (SMEs) depend on banks for credit. We show that the severity of the Eurozone crisis was worse in … from international banks. Eurozone banking integration in the years 2000-2008 mainly involved cross-border lending between …
Persistent link: https://www.econbiz.de/10012119808
economic constitution for Europe in which several pillars supposedly aim at ensuring sound money in the Eurozone. The policies …German policy during the Eurozone crisis supposedly follows an ordoliberal tradition. In this paper, we discuss to what … the German government pushed during the Eurozone crisis have been informed by the ordoliberal tradition. In particular …
Persistent link: https://www.econbiz.de/10010528303
European banks have been criticized for holding excessive domestic government debt during the recent Eurozone crisis … covering the entire timeline of the Eurozone crisis, I first re-confirm that the crisis led to the reallocation of sovereign …
Persistent link: https://www.econbiz.de/10012123037
to identify over 25,000 news on the Eurozone and country-specific economic topics. Our findings emphasize the relevance …
Persistent link: https://www.econbiz.de/10014486807
Eurozone financial crisis: (i) Under-capitalized banks were less likely to cut credit to non-viable firms. (ii) Credit …
Persistent link: https://www.econbiz.de/10011624235
We use an original monthly dataset of 131 individual euro area banks to examine the effectiveness and transmission mechanism of the Eurosystem's credit support policies since the start of the crisis. First, we show that these policies have indeed been succesful in stimulating the credit flow of...
Persistent link: https://www.econbiz.de/10011646726
We estimate a logit mixture vector autoregressive model describing monetary policy transmission in the euro area over the period 2003Q1–2019Q4 with a special emphasis on credit conditions. With the help of this model, monetary policy transmission can be described as mixture of two states...
Persistent link: https://www.econbiz.de/10012383710
study aims to examine whether the capital injections primarily benefited high-productivity firms or were misallocated to … struggling "zombie" firms. The empirical results suggest that banks, post-injection, increased lending to both high-productivity … non-zombie firms and low-productivity zombie firms. While the former is in line with conventional theories that prioritize …
Persistent link: https://www.econbiz.de/10014334373
We develop a stylized DSGE model in which banks face capital regulation and their loan portfolios are subject to non-diversifiable losses due to aggregate shocks. The framework is used to explore the importance of the interaction between macroeconomic conditions, credit default and bank...
Persistent link: https://www.econbiz.de/10011557772
In the presence of negative monetary-policy rates and a zero lower bound on deposit rates, banks that are more exposed to central banks' asset-purchase programs reduce their lending to the real economy by more than their counterparts. When banks face a lower bound on customer deposit rates, an...
Persistent link: https://www.econbiz.de/10012649768