We identify the origin of the contradicting perspectives on credit creation offered by Austrian, Mainstream and Post …-exist any transaction and loan. We develop a unified framework of credit creation based on three leading variables: (i) the … amount of collateral assets accepted, (ii) the level of leverage and (iii) the level of trust and confidence. As credit …

find that: bond finance dampens the overall response of firm credit to monetary policy shocks in economies with a high …

We explore empirically how the time-varying allocation of credit across firms with heterogeneous credit quality matters … credit allocation, captured by Greenwood and Hanson (2013)'s ISS indicator, helps predict downside risks to GDP growth and … systemic banking crises, two to three years ahead. Our analysis indicates that the riskiness of credit allocation is both a …