Many studies consider the aggregate impact of crises on output and the fiscal cost of reconstruction, but few studies of the impact of a crisis at the level of the firm. In this paper we consider the impact of the Brazilian crisis of 1999 on the extensive and intensive margin of exporters versus...

In this paper we examine the relationship between real activity and financial market tightness in Europe using data on 500 corporate bonds between July 1994 and May 2011 for Austria, Belgium, France, Germany, Italy, Netherlands, and Spain – and the United Kingdom. We evaluate the importance of...

The relationship between the production process and short-term credit is well established in the literature. Here we argue that the stage of fabrication of inventories can affect the incentives to offer and take up trade credit, an important source of short-term credit for businesses. Using a...

This paper investigates bond market development in Asia by exploring the determinants of firms’ decisions to issue public debt in a range of Asian economies. Using a novel database covering the period 1995 to 2007, we use comparable micro level panel of nine countries - China, Hong Kong,...

Corporate bond issuers in emerging economies in Asia have often had a choice between an onshore market and an offshore one. Since 1998, however, many of these issuers have increasingly turned to the onshore market. This paper investigates systematically what factors have influenced this choice...

There are some surprising parallels between the 1997-8 Asian crisis and the recent financial crisis that provide lessons for policymakers. This paper provides a theoretical model of an open economy credit channel including currency mismatch and financial fragility where exporting firms have...

This paper provides a new insight into the relationship between financial market tightness and real activity using a unique new database extracted from Bloomberg to construct a credit spread index from 500 corporate bonds issued in eight European countries. We find that European bond spread...

Trade credit is an important source of finance for firms and has been well researched, but the focus has been on financial trade-offs. In this paper, we consider the trade-offs with inventories and develop a simple model that recognizes the incentives a firm faces to offer and receive trade...

This paper investigates the role of trade credit in the transmission of monetary policy. Most models of the transmission mechanism allow firms to access only financial markets or bank lending according to some net worth criterion. In our model we consider external finance from trade credit as an...

This paper offers a new approach that estimates the response of interest rates to inflation and the output gap at various points (quantiles) on the conditional distribution of interest rates. This offers an improvement on empirical estimates conducted only at the mean and also allows us to test...