We study the synchronization of credit booms and busts among 12 major European economies and the United States between … 1972-2011. We propose a regression-based procedure to test whether boom-bust phases of credit cycles coincide across … countries and to cluster countries with positively synchronized credit cycles. We find strong evidence against the existence of …

The credit-to-GDP gap, as proposed by the Basel methodology, has become the reference measure for the activation of the … undesired effects by considering potential complementary credit gap measures that incorporate economic fundamentals …

approach in the spirit of Rajan and Zingales (1998) in order to study whether and to what extent the credit cycle influences … the efficient allocation of resources across firms. I document that a higher availability of credit leads to a decline in … both capital and labor misallocation, suggesting that, when credit is above its trend, the additional funds flowing in the …

Data from 135 countries covering five decades suggests that creditless recoveries, in which the stock of real credit … role in the recent weak credit performance of Europe. There are reasons to believe that, despite various efforts, normal … credit growth does not return. -- creditless recoveries ; credit growth ; financial structure ; real exchange rate adjustment …

This paper reviews the empirical relationships between credit growth, economic recovery, and bank profitability in … 10 percent increase in bank credit to the private sector is associated with a rise of 0.6-1 percent in real GDP and 2 … profitability is positively and significantly influenced by credit growth, but this relationship has weakened after the GFC …

This paper provides new evidence on the dynamic dependences of European corporate credit spread in three markets: Bond …, Credit Default Swap (CDS), and Asset Swap (ASP). Using daily data from 2005 to 2009, we find that credit spread returns are …

The paper inspects the credit impact of policy instruments that are commonly applied to contain systemic risk. It …, borrower-based measures, caps on long-term maturity and exchange rate mismatch, and asset-based capital requirements on credit …

therefore suggest that broad credit cycle conditions correspond much stronger with looser credit standards (measured via price …