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This paper uses U.S. credit register data and the 2018-19 Trade War to study the effects of uncertainty on domestic … credit supply. Exploiting differences in banks' ex-ante exposure to trade uncertainty, we find that increased uncertainty is …
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This paper uses U.S. loan-level credit register data and the 2018-2019 Trade War to test for the effects of … international trade uncertainty on domestic credit supply. We exploit cross-sectional heterogeneity in banks' ex-ante exposure to … extensive margins. We document two channels underlying the estimated credit supply effect: a wait-and-see channel by which …
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This paper contributes to the current debate on what role financial stability considerations should play in monetary policy decision and how best to integrate macro-prudential and monetary policy frameworks. The paper broadly supports the view that monetary policy easing induces greater...
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