corporate credit risk relative to the US, and when european firms value more than US firms the flexibility and information …We present a dynamic general equilibrium model with agency costs where: i) firms are heterogeneous in the risk of …

others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit … slower recoveries. Credit-financed housing price bubbles have emerged as a particularly dangerous phenomenon …

studies conducted in eleven countries to explore liquidity risk transmission. Among the main results is, first, that … explanatory power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk … management across global banks can be important for liquidity risk transmission into lending. Fourth, there is substantial …

We develop a model of informal risk-sharing in social networks, where relationships between individuals can be used as … social collateral to enforce insurance payments. We characterize incentive compatible risk-sharing arrangements and obtain …-dimensional networks, where people have connections in multiple directions, are sufficiently expansive to allow very good risk-sharing. We …

This paper studies the role of credit in the business cycle, with a focus on private credit overhang. Based on a study …; and for both types of recession, more credit-intensive expansions tend to be followed by deeper recessions and slower … controls and their lags. Then we study how past credit accumulation impacts the behavior of not only output but also other key …

domestic credit expansion and real currency appreciation have been the most robust and significant predictors of financial …