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 …

---promoting bond issuance causes exit while cheaper bank credit induces entry. When reducing transactions costs in one market, the …

This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential … literature on financial networks, we focus on how anticipation of future defaults may result in ex ante “credit freezes,” whereby … banks refuse to extend credit to one another. We first characterize the terms of the interbank contracts and the patterns of …

. We combine administrative data on all firms in Spain with a matched bank-firm-loan dataset on the universe of corporate …-employee literature. We construct firm-specific exogenous credit supply shocks and estimate their direct and indirect effects on real … activity using firm-specific measures of upstream and downstream exposure. Credit supply shocks have sizable direct and …

bank specialization into account when selecting their lending banks, and that credit supply shocks disproportionately … affect a firm's exports to markets where the lender specializes in. Thus, bank specialization makes credit difficult to … substitute, which has consequences for competition in credit markets and the transmission of credit shocks to the real economy …

are usually preceded by credit booms. Second, credit booms often do not result in a crisis. That is, there are "good …