The reciprocal loan simply means that in return for a loan for a specific period, the lender receives an equivalent amount of loan for a similar period of time. Some contemporary scholars believe that reciprocal loans are legitimate, if they are not tied, that is if the lending of one loan does...

Romer (2000) provides an alternative model to the AS/AD and IS/LM models that abandons the LM schedule by having the short-term interest rate set by the central bank. His framework acknowledges the critical role of the central bank in determining short-term interest rates, which moves mainstream...

Local currency borrowers are statistically significantly affected by exchange rate fluctuations due to the bank lending channel. Using microdata on borrowers from Hungary, this study examines the spillover effects of foreign currency loans on local currency borrowers following an unexpected...