Finance and the Business Cycle International, Inter-Industry.pptVIP

Finance and the Business Cycle: International, Inter-Industry Evidence Matías Braun The Anderson School at UCLA Borja Larrain Harvard University Finance and the Business Cycle: Outline Motivation and Previous Evidence Basic Idea and Implementation Main Results Robustness and further Results Conclusion Motivation and Previous Evidence Financial frictions might help propagate primitive shocks External financiers do not want to provide funds: Williamson (1987), Bernanke and Gertler (1989), Kiyotaki and Moore (1997). External financiers (banks) cannot provide funds: Bernanke and Blinder (1988)