TY - BOOK ID - 84658628 TI - Small and Medium Size Enterprises, Credit Supply Shocks, and Economic Recovery in Europe PY - 2014 SN - 149830608X 1498361536 1498368085 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Financial crises KW - Credit KW - Recessions KW - Global Financial Crisis, 2008-2009. KW - Value added KW - Small business KW - Added value KW - Manufacturing processes KW - Global Economic Crisis, 2008-2009 KW - Subprime Mortgage Crisis, 2008-2009 KW - Business cycles KW - Depressions KW - Borrowing KW - Finance KW - Money KW - Loans KW - Banks and Banking KW - Macroeconomics KW - Money and Monetary Policy KW - Economic Theory KW - Industries: Financial Services KW - Business Fluctuations KW - Cycles KW - Financial Crises KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Agriculture: Aggregate Supply and Demand Analysis KW - Prices KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Monetary economics KW - Economic theory & philosophy KW - Economic growth KW - Banking KW - Supply shocks KW - Economic recovery KW - Bank credit KW - Economic theory KW - Financial institutions KW - Supply and demand KW - Banks and banking KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84658628 AB - The limited access to bank credit in recent years has increased the pressure on small and medium size enterprises (SMEs), forcing them to scale down investment plans and production. This paper, which explores the macroeconomic implications of this channel, finds evidence that countries with high prevalence of SMEs tended to recover more slowly from the global financial crisis than their peers, implying that the interaction of the economic structure and access to bank financing plays a critical role in episodes of economic recovery. This conclusion is reinforced by a VAR estimation, which demonstrates that a negative credit supply shock applied to SMEs has an adverse effect on economic activity, and this impact is amplified in countries that have a high share of SMEs. ER -