for housing, low interest rates, innovations in mortgage lending and securitization, and a breakdown in credit quality …The US financial system is undergoing a painful restructuring as credit losses originating in the mortgage finance … the credit losses, restructure and recapitalize the financial industry, and set the economy on a path to recovery. This …

dynamics generate periods of growing aggregate credit volumes and falling credit standards even in the absence of "financial … shocks." Falling credit standards in turn lead to excess risk exposure in the aggregate, precipitating future crises. The … credit cycle is triggered by low interest rates, and longer booms lead to sharper crises. Saving gluts and expansionary …

This paper develops a theory of the credit cycle to account for recent evidence that capital is increasingly allocated … credit cycle and consider policy implications. …

The Basel III regulation explicitly prescribes the use of Hodrick-Prescott filters to estimate credit cycles and … concerns on its fitness for policy use. To investigate this problem we study credit cycles in a panel of 26 countries between …