deregulation and estimate a large impact of this credit boom on asset prices. However, this direct effect---the focus of most …

This paper studies episodes in which aggregate bank credit contracts alongside expanding economic activity—credit …--on average, they occur every five years. By comparison, banking crises take place every eight years on average. Credit reversals …

This paper proposes a semi-structural approach to identifying excessive household credit developments. Using an … overlapping generations model, a normative trend level for the real household credit stock is derived that depends on four …-aged cohort, and institutional quality. Semi-structural household credit gaps are obtained as deviations of the real household …

This paper examines how the materialization of credit defaults affects the real economy. I estimate a DSGE model … including banks, firms and financial frictions using euro area data. The estimation results show that a positive credit default … shock, which is identified as an unanticipated increase in credit default losses, complicates monetary policy because output …

degree of credit/maturity transformation. We develop a dynamic model in which an entrepreneur borrows from overlapping …-generation households via layers of funds, forming a credit chain. Each intermediary fund in the chain faces rollover risks from its lenders …. We show that the equilibrium chain length minimizes the run risk for any given contract and find that restricting credit …

credit booms. Such equilibria are characterised by sharp increases in credit supply and deteriorations in average loan …

-off in situations with many alternative lenders (booms) and with few alternative lenders (credit crises), and explains how … the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …

the credit supply process. The economy is susceptible to self-fulfilling credit freezes: banks abstain from lending when … they fear that other banks will withhold lending, and the resultant credit contraction impedes economic growth. Capital … credit to the real economy. However, the equilibrium interest rate reveals public information about economic fundamentals and …

In U.S. data 1981-2012, unsecured firm credit moves procyclically and tends to lead GDP, while secured firm credit is … acyclical; similarly, shocks to unsecured firm credit explain a far larger fraction of output fluctuations than shocks to … secured credit. In this paper we develop a tractable dynamic general equilibrium model in which unsecured firm credit arises …

This paper argues that self-fulfilling beliefs in credit conditions can generate endogenously persistent business cycle … shocks. Capital from less productive firms is lent to more productive ones in the form of credit secured by collateral and … also as unsecured credit based on reputation. A dynamic complementarity between current and future credit constraints …