Credit spread variability in U.S. business cycles: The Great Moderation versus the Great Recession

Preprint OPEN
Hylton Hollander and Guangling Liu;
  • Subject: Financial intermediation, credit spreads, financial frictions, Great Recession
    • jel: jel:E32 | jel:E43 | jel:E44 | jel:E51 | jel:E52

This paper establishes the prevailing financial factors that influence credit spread variability, and its impact on the U.S. business cycle over the Great Moderation and Great Recession periods. To do so, we develop a dynamic general equilibrium framework with a central... View more
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