01893cas a2200253 a 4500 AALejournalIMF005704 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872163 1018-5941 BD-DhAAL BD-DhAAL Cihak, Martin. From Subprime Loans to Subprime Growth? : Evidence for the Euro Area / Martin Cihak, Petya Koeva Brooks. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The global financial crisis has highlighted the potential of financial conditions for influencing real economic activity. We examine the linkages between the financial and real sectors in the euro area, finding that (i) bank loan supply responds negatively to declines in bank soundness; (ii) a cutback in bank loan supply has a negative impact on economic activity; (iii) a positive shock to the corporate bond spread lowers industrial output; and (iv) risk indicators for the banking, corporate, and public sectors show an improvement beginning in 2002-03, followed by a major deterioration since 2007. These estimates imply that the currently estimated bank losses would subtract some 2 percentage points from the euro area output (but with considerable uncertainty around the estimates). Mode of access: Internet Koeva Brooks, Petya. IMF Working Papers; Working Paper ; No. 2009/069 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/069/001.2009.issue-069-en.xml IMF e-Library