Extending Bernanke and Blinder (1988, 1992), Kashyap and Stein (2000), Peek and Rosengren (2010) and others, this paper incorporates two additonal variables - the world interest rate and the exchange rate - into the bank loan supply function. The results show that the demand for bank loans is...

This paper seeks to draw lessons from the IMF’s experience in handling financial crises around the globe over the past ten years that are relevant to the challenges faced by countries in Latin America, especially in the wake of the recent crisis in Argentina. Experience suggests that...