sovereign debt crisis, in the course of which under-capitalized banks in default-risky countries experienced an increase in … funding costs and raised their holdings of domestic government debt. The model is quantified using Portuguese data and …

Using a pan-European data set of 8.5 million firms, this paper finds that firms with high debt overhang invest … same time, the positive impact of a marginal increase in debt on investment efficiency disappears if firm debt is already … of the disciplining role of debt, as well as with models highlighting the negative link between agency problems at firms …

Debt levels have surged since the mid-1990s and have reached historic highs across the OECD. High debt levels can … create vulnerabilities, which amplify and transmit macroeconomic and asset price shocks. Furthermore, high debt levels hinder … shocks. The empirical evidence suggests that when private sector debt levels, particularly for households, rise above trend …