Reversing the Financial Accelerator : Credit Conditions and Macro-Financial Linkages /

This paper examines the role of credit markets in the transmission of U.S. macro-financial shocks through the prism of a financial conditions index (FCI) based on a vector autoregression (VAR) methodology. It explores the relative predictive power of market variables compared to credit standards/con...

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書目詳細資料
主要作者: Bayoumi, Tamim
其他作者: Darius, Reginald
格式: 雜誌
語言:English
出版: Washington, D.C. : International Monetary Fund, 2011.
叢編:IMF Working Papers; Working Paper ; No. 2011/026
在線閱讀:Full text available on IMF
實物特徵
總結:This paper examines the role of credit markets in the transmission of U.S. macro-financial shocks through the prism of a financial conditions index (FCI) based on a vector autoregression (VAR) methodology. It explores the relative predictive power of market variables compared to credit standards/conditions. The main conclusion is that under plausible specifications credit conditions dominate market variables, highlighting the importance of credit supply. The fact that direct measures of credit conditions anticipate future movements in asset prices has an extremely important implication. Most models of the credit channel see it as an amplifier of underlying changes in financial wealth. The impact of credit conditions on growth compared to other market variables implies that credit supply drives other financial variables rather than responding to them.
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實物描述:1 online resource (35 pages)
格式:Mode of access: Internet
ISSN:1018-5941
訪問:Electronic access restricted to authorized BRAC University faculty, staff and students