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What is responsible for the easing of credit standards before the crisis: monetary policy or the savings glut?

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  • Penalver, A.

Abstract

This Rue de la Banque compares two explanations for the significant easing of credit standards and risk premia observed before the crisis: the easing of monetary policy and the increase in global savings (the famous “savings glut” of Ben Bernanke). The results of our modelling show that only the savings glut appears to explain the pre-crisis behaviour.

Suggested Citation

  • Penalver, A., 2016. "What is responsible for the easing of credit standards before the crisis: monetary policy or the savings glut?," Rue de la Banque, Banque de France, issue 25, may..
    • Handle: RePEc:bfr:rueban:2016:25
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    References listed on IDEAS

    as
    1. Ben S. Bernanke, 2010. "Monetary policy and the housing bubble: a speech at the Annual Meeting of the American Economic Association, Atlanta, Georgia, January 3, 2010," Speech 499, Board of Governors of the Federal Reserve System (U.S.).
    2. repec:fip:fedgsq:y:2010:x:4 is not listed on IDEAS
    3. A. Penalver, 2014. "Pre-crisis credit standards: monetary policy or the savings glut?," Working papers 519, Banque de France.
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