Demand and supply forces restriced credit: Bank of Italy
A paper published by the Bank of Italy in June assesses the role of supply and demand factors in credit developments with a focus on the sharp slowdown during the recent financial crisis.
The authors - Paolo Del Giovane, Ginette Eramo and Andrea Nobili - investigate the role of credit standards changes in Italian banks by combining qualitative information from the Eurosystem Bank Lending Survey with micro data on loan prices and quantities for the participating banks.
The paper finds both demand
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