The Credit Channel and the Subprime Mortgage Crisis: An Examination of Monetary Policy (Palgrave Studies in Economic History)

This book explores the evolving role of the credit channel in contemporary macroeconomic policy and financial stability.In ten analytical chapters, Cristina Peicuti examines the dual function of the credit channel-as both a conduit for monetary policy transmission and a macroeconomic stabilizer-within the broader context of capitalist economies. Grounded in both theoretical inquiry and empirical investigation, the volume first establishes the conceptual foundations of the credit channel, drawing on influential contributions from leading economists.Peicuti systematically demonstrates the channel’s critical role in amplifying or mitigating the effects of monetary interventions, thereby shaping macroeconomic outcomes. A central focus of the book is the empirical analysis of the credit channel’s performance during the European subprime crisis.Pairing case studies with policy evaluations, Peicuti assesses the measures adopted by EU Member States to preserve credit flows and support economic