📅 Join us next Thursday (11 Jun) as Cedric Huylebroek (@HuylebroekC ) from KU Leuven and Norges Bank presents his research: "Banks, Firms, and Households: Credit Shock Amplification and Real Effects."
Register: https://t.co/zgPrCjH8h9
#EconTwitter#MacroFinance#LaborEconomics
(10/10)
💡𝐏𝐨𝐥𝐢𝐜𝐲 𝐢𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬:
Stress tests and stabilization policies should account for 𝐥𝐢𝐧𝐤𝐚𝐠𝐞𝐬 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐛𝐚𝐧𝐤𝐬, 𝐟𝐢𝐫𝐦𝐬, 𝐚𝐧𝐝 𝐡𝐨𝐮𝐬𝐞𝐡𝐨𝐥𝐝𝐬.
Ignoring those connections means underestimating how credit shocks ripple through the economy.
📄 Read the paper here: https://t.co/w4OZUjbIL4
I’m on the #EconJobMarket! 👋
Economists have long debated if credit shocks to firms or to households have the largest impact on the economy.
But prior research couldn’t separate shocks affecting
(i) only firms
(ii) only households
(iii) both
𝐌𝐲 𝐉𝐌𝐏 𝐟𝐢𝐥𝐥𝐬 𝐭𝐡𝐢𝐬 𝐠𝐚𝐩.
A JMP 🧵 (1/10)
(9/10)
This amplification also matters at the 𝐦𝐚𝐜𝐫𝐨 𝐥𝐞𝐯𝐞𝐥: municipalities where both individuals and their employers were 𝐣𝐨𝐢𝐧𝐭𝐥𝐲 exposed saw the largest declines in consumption and employment. ⬇️
This underscores the need for rich macro models that incorporate financial frictions on both the firm and household side, with rigidities in both goods and labor markets.
The one and only Norges Bank PhD internship is back: Come to Oslo to write a paper with us! Deadline for application: November 2. Several papers have reached R&R and WP status over the last year. https://t.co/6AUCI8lsry
💡Taken together, our findings offer novel evidence on the network effects of PE buyouts, deepening our understanding of the real economic implications of PE investments, with valuable policy implications.