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Archive » April 2018 » Credit demand and supply in Italy: a new analysis based on a disequilibrium approach

Credit demand and supply in Italy: a new analysis based on a disequilibrium approach

Vincenzo D’Apice, Francesco Masala, Pierluigi Morelli, Giovanni Walter Puopolo
April 2018 - n. 4
Jel codes: G21, G28

What has been the role of demand and supply for loans to non financial firms in Italy in the 1997-2017 period? An approach based on disequilibrium models shows the stocks of credit demanded by firms and supplied by banks, otherwise not observable. The results outline that supply has been generally larger than demand, due to high firm liquidity. This implies that a stimulus to firm investments is the real key policy option in Italy.

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