Consumption risk sharing among U.S. federal states increases in booms and decreases in recessions. We find that small firms' access to credit markets plays an important role in explaining this stylized fact: business cycle fluctuations in aggregate risk sharing are more pronounced in states in...

The aim of this research paper is to understand the impact of credit growth on the current account. Considering the increasing importance of financial stability for the design of monetary policy by the Turkish Central Bank (CBRT), investigating this relation deserves special attention. Our paper...