Uncertainty and Credit: The Chicken or the Egg Causality Dilemma

dc.contributorNoreña Chávez, Diego Alonso
dc.creatorSu, C.W.
dc.creatorLv, S.
dc.creatorQin, M.
dc.creatorNoreña Chávez, Diego Alonso
dc.date.accessioned2024-03-06T20:14:30Z
dc.date.accessioned2024-05-08T12:58:14Z
dc.date.available2024-03-06T20:14:30Z
dc.date.available2024-05-08T12:58:14Z
dc.date.created2024-03-06T20:14:30Z
dc.date.issued2024
dc.identifierSu, C. W., Lv, S., Qin, M. & Noreña, D. (2024). Uncertainty and Credit: The Chicken or the Egg Causality Dilemma. Emerging Markets Finance and Trade. https://doi.org/10.1080/1540496X.2024.2318299
dc.identifier1540-496X
dc.identifierhttps://hdl.handle.net/20.500.12724/20038
dc.identifierEmerging Markets Finance and Trade
dc.identifierhttps://doi.org/10.1080/1540496X.2024.2318299
dc.identifier2-s2.0-85185520143
dc.identifier.urihttps://repositorioslatinoamericanos.uchile.cl/handle/2250/9355171
dc.description.abstractThis paper seeks to explore whether bank credit (BC) contains useful information for mitigating economic policy uncertainty (EPU). The results of the bootstrap rolling-window test show that EPU is an effective channel for triggering BC. Additionally, it finds a feedback effect of BC on EPU, indicating that BC is a favorable tool for predicting EPU. Rising policy uncertainty leads banks to adopt aggressive or conservative credit strategies, which further increases policy adjustments. This circular relationship seems to be caught in a chicken or egg dilemma, demonstrating the importance of the government and the banking system in maintaining economic stability.
dc.languageeng
dc.publisherRoutledge
dc.publisherUS
dc.relationurn:issn:1540-496X
dc.rightsinfo:eu-repo/semantics/restrictedAccess
dc.sourceRepositorio Institucional - Ulima
dc.sourceUniversidad de Lima
dc.titleUncertainty and Credit: The Chicken or the Egg Causality Dilemma
dc.typeinfo:eu-repo/semantics/article


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