We argue that China's housing market volatility is driven by a unique institutional nexus of local government 'land financing' and novel central bank monetary policy tools, distinguishing it from Western precedents. Addressing a critical research gap-the amplification role of bank credit...

We develop a model with diagnostic expectations (DE) and a financial accelerator (FA) that generates mutually reinforcing shock amplification, especially in the case of demand shocks. However, supply shocks can be dampened via a debt deflation channel, which is strengthened amid DE. Importantly,...

We establish basic facts about the external finance premium. Tens of millions of individual loan contracts extended to euro area firms allow studying the determinants of the external finance premium at the country, bank, firm, and contract levels of disaggregation. At the country level, the...