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Finance and Business Cycles: The Credit-Driven Household Demand Channel / Atif R. Mian, Amir Sufi.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Mian, Atif R.
Contributor:
National Bureau of Economic Research.
Sufi, Amir.
Series:
Working Paper Series (National Bureau of Economic Research) no. w24322.
NBER working paper series no. w24322
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Finance and Business Cycles
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2018.
Summary:
Every major financial crisis leaves its unique footprint on economic thought. The early banking crises taught us the importance of financial sector liquidity and the lender of last resort. The Great Depression highlighted the devastating effects of bank failures and the need for counter-cyclical fiscal and monetary policy. The Great Recession has brought to the surface the importance of credit-driven business cycles that operate through household demand. We discuss empirical evidence accumulated over the last decade supporting this view, and we also describe accompanying theoretical work that helps define these concepts.
Notes:
Print version record
February 2018.

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