POPA ReconOn transmission and on private credit looking like organic growth. Credit-fuelled returns tend to come early, and are given back later.
On transmission and on private credit looking like organic growth. Credit-fuelled returns tend to come early, and are given back later. 1. “Transmission into each channel matters”: yes, and our project shows it Our liquidity measure tracks transmission. It combines the price of credit, availability of funding (bank credit, commercial paper spreads, reserves), collateral and the dollar. It led the stock market by about 9 months, then reversed at 15–20 months. A money-supply version led industrial production by 9–15 months. The 2010s show the gap. Quantitative easing expanded bank reserves enorm…
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