diversify away local liquidity shortfalls, allowing it to maintain 49 percent higher credit growth from 1929 to 1933 than …

varies over time. These information dynamics determine the evolution of credit, output and productivity, which feeds back … into incentives to produce information. We characterize this intricate dynamic relation. A credit boom happens when …. Information about firms' individual productivities over credit booms can prevent or tame the crisis, acting as an endogenous …

firms. This paper studies the macroeconomic implications of these financial links. In our model, trade credit is the outcome … credit multiplier: suppliers can enforce repayment of these IOUs, and they can discount these bills with banks to obtain … of suppliers. Using Italian data, we find that the credit multiplier is sizable and show that trade credit amplified the …

increases considerably. We investigate the causal pathways that lead to this result and argue that credit creation and asset …

rate that introduces a feedback loop between aggregate demand and credit conditions. Contrary to the Mundellian paradigm …