policies foster growth disproportionately in more credit/liquidity-constrained industries. Second, while higher bank capital … ratios may contribute to reducing the benefit of a countercyclical monetary policy, countercyclical credit enhances growth … disproportionately in more credit/liquidity-constrained industries and this complements the growth effects of countercyclical monetary …

-2009 output collapse. To this end, we use three variables: credit stock, credit flow and money supply M1. We find that the changes … in the credit flow, as percentage of GDP, are the most distinctly correlated with the GDP rate. During the growth … recovery, the credit flow tends to rise in six of the surveyed countries, although the credit stock declines in some cases. On …