Working Paper 1310 April 2015 WHEN CREDIT DRIES UP : JOB LOSSES IN THE GREAT RECESSION

This paper studies whether the solvency problems of Spain’s weakest Banks during the Great Recession had real effects. Data from the official credit register of the Bank of Spain indicate that those banks curtailed lending well in advance of their bailout. We show the existence of a credit supply shock, controling for firm fixed effects, and assess its… CONTINUE READING