Procyclicality of credit supply, which refers to the simultaneous movement of credit issued to the non-financial sector alongside economic activity indicators, can create a destabilizing feedback loop between the banking system and the real economy. The impact of credit supply on the financial...

For a selected group of Latin America countries we estimated the parameters of convergence equations on the basis of annual data. We test cross-country heterogeneity of parameters within a system of Seemingly Unrelated Regression Equations (SURE) that departures from standard approach utilizing...