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Unpacking the Effects of Bank Credit Supply Shocks on Economic Activity

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Abstract

In this note, we examine the effects of bank credit supply shocks on real economic activity. First, we estimate how GDP and various aggregate demand sectors respond to such shocks. Second, based on the estimated responses, we compute how much those sectors contribute to the overall response of aggregate demand to bank credit supply shocks.

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  • Michele Cavallo & Juan M. Morelli & Rebecca Zarutskie, 2024. "Unpacking the Effects of Bank Credit Supply Shocks on Economic Activity," FEDS Notes 2024-05-24-2, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfn:2024-05-24-2
    DOI: 10.17016/2380-7172.3517
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