More on bank lending data
Source: http://www.econbrowser.com/archives/2009/06/more_on_bank_le.htmlPosted on Tuesday, June 2nd, 2009 | In Economics, Market Commentary
Further evidence on the decline in bank lending.
Last week I highlighted the debate over the degree of the contraction in bank lending. Another issue that I neglected to mention is that the series on bank lending used by Chari, Christiano and Kehoe referred only to lending by commercial banks. When assets of failed thrifts are acquired by commercial banks, the result is that the measured loans by commercial banks go up even though aggregate lending may have gone down.
Zach Pandl
of Nomura Securities calls my attention to their analysis which constructs a series that tries to correct for these reclassifications. Nomura found that these corrections eliminate the increase in bank lending that one would otherwise see in the original commercial bank lending data.
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Technorati Tags: macroeconomics,
economics,
Federal Reserve,
credit crunch
Last 5 posts by James Hamilton
- Yes the future deficits are worrisome - November 25th, 2009
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- Will rising oil prices derail the recovery? - November 10th, 2009
bank lending, bank lending data;, Economics, Federal Reserve System, Market Commentary, Nomura Securities
 About James Hamilton (http://www.econbrowser.com)
James Hamilton received his Ph.D. in Economics from the University of California at Berkeley in 1983. He has been a professor at the University of California, San Diego since 1990 and served as Chair of the Economics Department from 1999 to 2002. He is the author of Time Series Analysis, the leading text on forecasting and statistical analysis of dynamic economic relationships. He has done extensive research on business cycles, monetary policy, and oil shocks, and has been a research adviser and visiting scholar with the Federal Reserve System for 20 years. |
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