Simon Gilchrist and Benoît Mojon develop credit risk indicators for banks and non-financial corporations in the euro area, and find that the 2008 financial crisis sharply increased the cost of borrowing for both groups of firms. In contrast, the 2000 dot-com collapse in the United States raised credit spreads for non-financial firms, but did not affect financial firms. Link to paper in first comment.
Posted on: Wed, 23 Apr 2014 13:30:57 +0000