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We investigate the role played by the credit supply shock across the business cycle in the U.S. over the period 1973 … credit supply shock triggers asymmetric and negative effects on macroeconomic variables. We find that the state …-dependent forecast error variance decomposition of industrial production, employment, and inflation due to the shock is from six to eight …
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A growing literature shows that credit indicators forecast aggregate real outcomes. While the literature has proposed various explanations, the economic mechanism behind these results remains an open question. In this paper, we show that a simple, frictionless, model explains empirical findings...
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In this paper, we use Structural VAR analysis to disentangle credit demand and supply shocks and their eFFect on real economic activity in Italy during the 2008-2014 crisis period. The three endogenous variables considered are the loan interest rate, the loans growth rate and the employment to...
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