robust fashion with a model extended to include credit as a payment mechanism. …

The paper constructs credit shocks using data and the solution to a monetary business cycle model. The model extends … the standard stochastic cash-in-advance economy by including the production of credit that serves as an alternative to … money in exchange. Shocks to goods productivity, money, and credit productivity are constructed robustly using the solution …

acquisition of bank credit pre-Covid-19 but was oflimited influence in post-Covid-19 lending behaviour. Banks treated SMEs that …