U.S. credit-market sentiment and global business cycles

- We study the international transmission of US credit-supply shocks.
- We use the methodology proposed by López-Salido et al. (2017).
- We find that US credit-supply shocks influence global business cycles.
- Economies more/less integrated with the U.S. are more/less impacted.

There is a growing literature on the international transmission of US credit-supply shocks. In this paper, we identify changes in the US credit supply with the methodology proposed by López-Salido et al. (2017). Empirically, we find robust evidence suggesting that US credit-supply shocks influence real activities in economies that are more economically or geographically integrated with the US.