RBI paper highlights shift in credit dynamics over business cycles
A Reserve Bank of India paper published on Monday finds that output leads credit during post-reform periods, contrary to pre-reform periods when credit leads output growth.
Krittika Banerjee, the paper's author, studies the extent of pro-cyclicality of credit in India, focusing on the lead and lag relationship between credit cycles and growth cycles. The author aims to learn whether credit leads or lags behind growth in the economy as a whole, and how the relationship varies over time and across
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