network model of the economy in which trade in intermediate goods is financed by supplier credit. In the model, a financial … shock to one firm affects its ability to make payments to its suppliers. The credit linkages between firms propagate …-industry credit flows from firm- and industry-level data. I then estimate aggregate and idiosyncratic shocks to industries in the US …

euro area as a whole and in its five largest countries. In a Bayesian VAR framework, the two credit supply shocks are … for business cycles. For the euro area, the explanatory power of the two credit supply shocks for GDP growth variations is …

, we offer new empirical evidence that credit declines during a recession primarily because of the reduction in the net … the bank credit market). Along the macroeconomic dimension of these gross flows, we document four cyclical facts. First …, the volatility of borrower inflows is two times as large as the volatility of obligors exiting from the credit market …

The goal of this paper is to provide up-to-date worldwide evidence on the short-term relationship between credit … economic statements, namely, that credit is procyclical and that changes in credit have strong effects on private expenditure …. According to the evidence produced, credit procyclicality -in the sense that the simple correlation coefficient is positive and …

This paper empirically assesses the effects of competition in the financial sector on credit procyclicality by … potential GDP leads to greater credit fluctuation in economies where:(i) competition among banks and,(ii) competition from non … developments in credit markets work to amplify and propagate shocks to the macroeconomy" (Bernanke et al., 1999). Furthermore …

The aim of this paper is to investigate the relationship between credit and business cycles within a nonlinear … the 1986-2010 period. Our findings show that credit procyclicality is nonlinear, depending on economic conditions. More … specifically, credit is highly procyclical in extreme-booms and busts-regimes in Canada, the UK and the US, while procyclicality is …

What are the long-run aggregate effects of monetary shocks displaying throughthe credit channel of monetary policy? We … credit and innovation. Then, we develop a DSGE model featuring endogenous growth, in which credit frictions constrain the …

significant increases in all three unemployment measures. On average, credit contractions in the sample increase total … impact on long-term unemployment emphasizes the sluggish recovery of labor markets following a credit downturn. The results … unemployment in the subsequent bust phase. Moreover, credit contractions associated with rigid labor market institutions lead to …