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Discussion Paper

Unpacking the Effects of Bank Credit Supply Shocks on Economic Activity


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.

https://doi.org/10.17016/2380-7172.3517

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2024-05-24

Number: 2024-05-24-2