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 …

aggregate data. Changes in household credit limits explain 40% of the differential rise and fall of employment across states … gradual, credit shocks greatly slowed the recovery …

justification for this pattern based on adverse selection that entrepreneurs face in credit markets. Individuals choose between …-subsidization in the credit market equilibrium results in excessive (insufficient) entry of low-skilled (high-skilled) agents into …

official beginning of the recession in the fourth quarter of 2007. Similarly, counties with the highest reliance on credit card … statistical model shows that household leverage growth and dependence on credit card borrowing as of 2006 explain a large fraction …

currency and reduce net exports. Emerging market policy makers however believe that inflows lead to credit booms and rising …

We propose a model of money, credit and bubbles, and use it to study the role of monetary policy in managing asset … bubbles. In this model, bubbles pop up and burst, generating fluctuations in credit, investment and output. Two key insights … away from bubbles - and the credit that they sustain - to money, reducing intermediation, investment and growth. We explore …

The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen … components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components … credit aggregates are not valid tests of this theory …

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