Series: IMF Working Papers
Author(s): Giovanni Melina , and Stefania Villa
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 05 June 2013
Keywords: deep habits, lending relationships, government spending, fiscal stimulus, government spending shocks, budget constraint,
This paper studies how fiscal policy affects loan market conditions in the US. First, it conducts a Structural Vector-Autoregression analysis showing that the bank spread responds negatively to an expansionary gove...