Martín, Alberto; Moral Benito, Enrique; Schmitz, Tom - 2018
constraints, a housing bubble initially raises credit demand by housing firms while leaving credit supply unaffected. It therefore … crowds out credit to non-housing firms. If time passes and the bubble lasts, however, housing firms eventually pay back their … higher loans. This leads to an increase in banks’ net worth and thus to an expansion in their supply of credit to all firms …