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This paper documents that an appreciation of the U.S. dollar is associated with a reduction in the supply of commercial … and industrial loans by U.S. banks. An increase in the broad dollar index by 2.5 points (one standard deviation) reduces U … secondary market where prices fall and liquidity worsens when the dollar appreciates, with stronger effects for riskier loans …
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The Big Problem of Small Change offers the first credible and analytically sound explanation of how a problem that dogged monetary authorities for hundreds of years was finally solved. Two leading economists, Thomas Sargent and François Velde, examine the evolution of Western European economies...
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