latter with a focus on private rather than public money creation. The model features an endogenous monetary spread or excess …

Credit spreads rise after a monetary policy tightening, yet spread reactions are heterogeneous across firms. Exploiting … with high leverage experience a more pronounced increase in credit spreads than firms with low leverage. A large fraction … of this increase is due to a component of credit spreads that is in excess of firms' expected default. Our results …

and credit frictions. We analyse the effect of a mean preserving shock to the variance of aggregate total factor … capital demand and, therefore, it is greatly magnified by the credit friction. Our findings suggest that uncertainty shocks … can generate sizable impact on economic activity only when transmitted through a credit channel …

We show that credit spreads rise after a monetary policy tightening, yet spread reactions are heterogeneous across …-financial firms, we document that firms with high leverage experience a more pronounced increase in credit spreads than firms with low … leverage. A large fraction of this increase is due to a component of credit spreads that is in excess of firms' expected …

Recent empirical evidence on the cross-country synchronization of credit spreads in response to US monetary policy … shocks has led to the notion of an ‘international credit channel' of US monetary policy. This paper provides novel evidence … on the existence of an international credit channel for the transmission of US financial shocks across borders, and …

, broadly understood as a proxy for the international supply of credit. It is found that in emerging markets a global liquidity …