Credit Crunch or What? Australian Banks during the 1986-93 Credit Cycle.
From: Economic Review (Atlanta, Ga.)
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Date: 7/1/2000
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Author: BHARUCHA, NARGIS; TALLMAN, ELLIS W.
&type=MAGS "Economic Review (Atlanta, Ga.)")
CYCLES IN CREDIT HAVE IMPORTANT IMPLICATIONS FOR THE EFFICIENCY OF RESOURCE ALLOCATION AS WELL AS FOR DEVELOPMENTS IN THE MACROECONOMY. DURING THE UPSWING OF A CYCLE, RAPID CREDIT GROWTH CAN SUPPORT INCREASING ECONOMIC ACTIVITY AND RISING ASSET PRICES. CONVERSELY, LOAN LOSSES AND THE UNWINDING OF A CREDIT boom can exacerbate an economic downturn if financial intermediaries become less willing to lend, thereby imposing further financial constraints on firms.
When bank loan growth ...
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