period 1940–2014, we document the following evidence that corporate debt plays a key role in explaining boom-bust cycles …, financial crises, and slow macroeconomic recoveries: (i) corporate debt accounts for two thirds of the aggregate credit … expansion before crises and three quarters of total nonperforming loans during the bust; (ii) expansions in corporate debt …

Using French firms’ balance sheet data, we show that corporate debt structure plays a significant role in ECB monetary … shocks is stronger for firms with a higher share of bank debt. Conversely, contractionary bond liquidity shocks lower … investment more for firms with higher bond shares of total debt. We further investigate the transmission channels and show that …

choose the foreign currency share of their debt. In the unique separating equilibrium, good firms optimally expose themselves …