A paper published by the Banque de France uses what it calls “a unique natural experiment – an unexpected drop in the cost faced by banks of funding loans to a subset of their clients” to examine how banks adjust their lending portfolios when faced with positive shocks.

In Unconventional monetary policy and bank lending relationships, Christophe Cahn, Anne Duquerroy and William Mullins look at the European Central Bank’s introduction of the Additional Credit Claims framework, or ACC, in 2012.