Tightening bank loans explains much of ‘Great Recession’ in eurozone
Paper uses bank lending survey data to construct indicator for credit tightening
Tightening in banks' supply of loans explains much of the contraction of the real economy in the eurozone, a paper published on October 27 by the European Central Bank (ECB) says.
In Loan supply, credit markets and the euro area financial crisis, Carlo Altavilla, Matthieu Darracq Paries and Giulio Nicoletti use bank-level information from the ECB's bank lending survey to construct a loan-supply indicator, measuring any movements in the supply of bank credit from 2005 to 2014. The authors also
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