euro area as a whole and in its five largest countries. In a Bayesian VAR framework, the two credit supply shocks are … for business cycles. For the euro area, the explanatory power of the two credit supply shocks for GDP growth variations is …

, with a contractionary shock leading to a downward revision of expectations. Second, we show that firms’ response depends on … the size and the sign of the shock, with only large and contractionary shocks having a significant negative effect on … expectations. Third, we observe that the different components of central bank communication (i.e. the pure monetary policy shock …

, the paper applies a newly developed methodology based on infinite VAR theory featuring a dominant unit to a large set of … dollar shock, generalised impulse response function shocks and a global shock to risk aversion. Our results show that the way … depends crucially on the nature of the shock. This result is noteworthy given the apparent divergence in competitiveness …

To what extent does the availability of credit depend on monetary policy? And, does this relationship vary with bank …

loan portfolios, allow for interbank trading and show how a credit bubble can develop from a financial innovation. We then …

multipliers. We find that a higher ratio of credit to households over GDP, a smaller share of government investment and a larger …

easing (QE). We study how lending responds to each shock using detailed bank, firm, and household data from Portugal, a …

smooth transmission of credit to borrowers. While results from the years prior to the crisis often cast doubts on the … provision of credit. We show that new factors, such as changes in banks' business models and market funding patterns, had …