Lending relationships and the collateral channel

Embed Cite Participate Recommend

Corporate investment is known to respond strongly to cyclical swings in firms’ collateral values. This collateral channel is a key source of business cycle amplification. Saleem Bahaj discusses how lending relationships insulate corporate investment from fluctuations in collateral values.

Publication

Image courtesy of interviewee

Log-in or Sign-up to Faculti
Currently viewing as guest. You have insight(s) remaining for this month.

Leave a Reply

Your email address will not be published.

Copyright © Faculti Media Limited 2013 - 2023. All rights reserved.
error: