Series: IMF Working Papers
Author(s): Fabian Valencia
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 02 December 2013
Keywords: Credit Cycles, Credit Crunch, Uncertainty, Self-insurance, real gdp, bank capital, gdp growth, bank capitalization, bank size, General
Recent studies show that uncertainty shocks have quantitatively important effects on the real economy. This paper examines one particular channel at work: the supply of credit. It presents a model in which a bank,...