, we offer new empirical evidence that credit declines during a recession primarily because of the reduction in the net … the bank credit market). Along the macroeconomic dimension of these gross flows, we document four cyclical facts. First …, the volatility of borrower inflows is two times as large as the volatility of obligors exiting from the credit market …

model. We find that a union aggregate systemic risk shock results in a sharp decline in output, with two thirds of the …

on productivity or investment, zombies may also cause negative financial spillover effects, where zombies receive credit … whether they cause spillovers on healthy firms’ credit conditions, focusing on two variables: new credit and interest rates …. Contrary to existing findings, our results indicate that zombie firms pay higher interest rates and receive less new credit …

dynamics generate periods of growing aggregate credit volumes and falling credit standards even in the absence of "financial … shocks." Falling credit standards in turn lead to excess risk exposure in the aggregate, precipitating future crises. The … credit cycle is triggered by low interest rates, and longer booms lead to sharper crises. Saving gluts and expansionary …