How does access to credit impact consumption volatility? Theory and evidence from advanced economies suggests that … fraction of them are credit constrained. Unconstrained households can respond to shocks to trend growth by raising current …

We study whether capital flows affect the degree of credit crunch faced by a country''s manufacturing firms during the … significant effect on the severity of the credit crunch. However, the composition of capital flows matters: pre-crisis exposure to … non-FDI capital inflows worsens the credit crunch, while exposure to FDI alleviates the liquidity constraint. Similar …

This paper studies episodes in which aggregate bank credit contracts alongside expanding economic activity-credit …--on average, they occur every five years. By comparison, banking crises take place every eight years on average. Credit reversals …

COVID-19 pandemic (February-June 2020) using various approaches to identify credit supply shocks. The pandemic crisis … borrowing surged in March and into the second quarter, thanks to credit line drawdowns and unprecedented policy support. In the … United States, the bond market was buoyant from the end of March onward, but credit supply conditions for bank loans and the …

Corporate credit growth in China has been excessive in recent years. This credit boom is related to the large increase …

-specific time-varying measure of credit supply. The contraction in credit supply explains one fourth of the reduction in employment …

We examine how the cost of corporate credit varies around fiscal consolidations aimed at reducing government debt …