December 2019 issue contents
Money, Credit, Monetary Policy, and the Business Cycle in the Euro Area: What Has Changed Since the Crisis?

Domenico Giannone,a Michele Lenza,b and Lucrezia Reichlinc


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 and the European sovereign debt crises. 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 crises.

JEL Code: E32, E51, E52, C32, C51.

Full article (PDF, 37 pages, 1,230 kb)
Online appendix


a Federal Reserve Bank of New York and CEPR
b European Central Bank and ECARES-ULB
c London Business School and CEPR