We show that supply-side financial shocks have a large impact on the investment decisions of firms. We do this by … developing a new methodology to separate firms' credit shocks from loan supply shocks, using a vast sample of matched bank … bank loan supply net of borrower characteristics and general credit conditions - can have large impacts on aggregate loan …

The recent financial crisis has put the spotlight on the rapid rise in credit which preceded it. In this paper, we … provide an empirical and theoretical analysis of the credit boom and the macroeconomic context in which it developed. We find … economies in which it took place. We show that this type of credit and financial cycle is hard to reconcile with existing …

This paper investigates the credit channel in Germany and the United Kingdom. The financial systems of these two … competition among credit intermediaries, resulting in a declining dependence on banks in Germany. …

Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more … occurrence of all three negative inflation effects, on growth, investment and real interest rates, in a model calibrated to …