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We characterize empirically the financial cycle using two approaches: analysis of turning points and frequency-based filters. We identify the financial cycle with the medium-term component in the joint fluctuations of credit and property prices; equity prices do not fit this picture well. We...
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This paper analyses the effectiveness of monetary policy on bank lending in a low interest rate environment. Based on a … less effective in stimulating bank lending growth when rates reach a very low level. This result holds after controlling … for business and financial cycle conditions and different bank-specific characteristics such as liquidity, capitalisation …
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