illiquid loans by issuing deposits. Deposit transfers across banks must be settled using central bank reserves. Transfers are … random and therefore create liquidity risk, which in turn determines the supply of credit and the money multiplier. We study … important role of disruptions in interbank markets, followed by a persistent credit demand shock. …

The crisis of the advanced economies in 2008-09 has focused new attention on money and credit fluctuations, financial … crises, and policy responses. We study the behavior of money, credit, and macroeconomic indicators over the long run based on … half of the twentieth century as shown by a decoupling of money and credit aggregates. We show for the first time how …

-run historical work has uncovered a range of important stylized facts concerning financial instability and the role of credit in …

credit easing, defined as a combination of lending to financial institutions, providing liquidity directly to key credit … values, and 2) financial institutions prefer speculation to new lending when markets are dislocated. We analyze credit easing …

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

What are the stylized facts that characterize the dynamics of credit booms and the associated fluctuations in macro … credit booms to data for 61 emerging and industrial countries over the 1960-2010 period. We identify 70 credit boom events …, half of them in each group of countries. Event analysis shows a systematic relationship between credit booms and a boom …

Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This … paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of …

The regulation of bank capital as a means of smoothing the credit cycle is a central element of forthcoming macro …-prudential regimes internationally. For such regulation to be effective in controlling the aggregate supply of credit it must be the case … credit are unable to offset changes in credit supply by affected banks. This paper examines micro evidence--lacking to date …