Staff Reports
Money, Credit, Monetary Policy, and the Business Cycle in the Euro Area: What Has Changed since the Crisis?
Number 885
April 2019

JEL classification: C32, C51, E32, E51, E52

Authors: Domenico Giannone, Michele Lenza, and Lucrezia Reichlin

This paper studies the relationship between the business cycle and financial intermediation in the euro area. We establish stylized facts and study their stability during the global financial crisis and the European sovereign debt crisis. Long-term interest rates have been exceptionally high and long-term loans and deposits exceptionally low since the Lehman collapse. Instead, short-term interest rates and short-term loans and deposits did not show abnormal dynamics in the course of the financial and sovereign debt crisis.

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AUTHOR DISCLOSURE STATEMENT(S)
Domenico Giannone
The author declares that he has no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Michele Lenza
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.

Lucrezia Reichlin
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.