This paper examines the relationship between aggregate consumer spending and credit availability in the United States …. The author finds that consumer spending falls (rises) in response to a reduction (increase) in credit availability …. Moreover, she provides a formal assessment of the possibility that credit availability is particularly important for consumer …

the question of whether money affects growth. In addition, we find that credit conditions also play a role in that … relationship. In particular, there is an additional negative short-run impact of money on growth when credit is not readily …We propose a drifting-coefficient model to empirically study the effect of money on output growth in Canada and to …

intermediate inputs matters for aggregate outcomes. This paper focuses on trade credit - the lending and borrowing of input goods … shows how trade credit alleviates financial frictions through a process of credit redistribution and creation, thus leading … credit lending, further tightening their customers’ borrowing constraint. The decline in economic activities following …

alternative means of payment such as credit cards. The main feature of the model is that cash circulates between economic … activities where the substitutability between cash and other means of payment is uneven. Our model predicts that, once credit … expands beyond a certain level, agents adjust their cash management practices in response to further credit expansions …

credit offered to firms, and requiring the intermediaries to raise further funds by paying the cost to issue equity. This … are characteristic of the credit crunches observed in the data. …

This paper proposes a theoretical framework to analyze the relationship between credit shocks, firm defaults and … volatility, and to study the impact of credit shocks on business cycle dynamics. Firms are identical ex ante but differ ex post … economy. A positive credit shock, defined as a rise in the loan-to-deposit ratio, increases output, consumption, hours and …

This paper examines the role of bank credit in modeling and forecasting business cycle fluctuations, and investigates … the international transmission of US credit shocks, using a global vector autoregressive (GVAR) framework and associated … country-specific error correction models. The paper constructs and compiles a dataset on bank credit for 33 advanced and …

How does news about future economic fundamentals affect within-country and cross-country credit allocation? How … between 2000-2010, including the changes in the sectoral allocation of bank credit and movements in cross-country borrowing …

fluctuations, in line with prominent roles played by the credit crunch and collapse of the asset-backed security market in the … riskiness of borrowers. By using loan approval probability as a screening device, banks ration credit following financial …