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Credit Matters
By:Mr. Tamim Bayoumi,Ola Melander
Published on 2008-07-01 by International Monetary Fund

This paper develops a framework for analyzing macro-financial linkages in the United States. We estimate the effects of a negative shock to banks'' capital/assetratio on lending standards, which in turn affect consumer credit, mortgages, and corporate loans, and the corresponding components of private spending (consumption, residential investment and business investment). In addition, our empirical model allows for feedback from spending and income to bank capital adequacy and credit. Hence, we trace the full credit cycle. An exogenous fall in the bank capital/asset ratio by one percentage point reduces real GDP by some 1½ percent through its effects on credit availability, while an exogenous fall in demand of 1 percent of GDP is gradually magnified to around 2 percent through financial feedback effects.
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Book ID of Credit Matters's Books is frEfU26O4hcC, Book which was written byMr. Tamim Bayoumi,Ola Melanderhave ETAG "lvcHlNSRmvk"
Book which was published by International Monetary Fund since 2008-07-01 have ISBNs, ISBN 13 Code is 9781451914801 and ISBN 10 Code is 1451914806
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