midst of credit intensive booms and bring about particularly deep and long-lasting recessions. We attempt to explain these … information on this market may generate sudden interbank market freezes, SBCs, credit crunches and, ultimately, severe recessions …. Simulations of a calibrated version of the model indicate that typical SBCs break out in the midst of a credit boom generated by a …

real credit stocks just before the boom and at the early stages of a boom. There is also evidence that high-cost booms are …

markets in which the availability of credit depends on the country's institutional environment. Our main finding is that … structural differences in domestic credit environments provide an explanation for the procyclicality of net capital inflows … observed in the South of Europe. We show that frictions in domestic credit markets generate asymmetries in the transmission …