Effects of Credit Expansions on Stock Market Booms and Busts

We thank Neng Wang, Jeremy Stein, Jiang Wang, Jiangze Bian, Zhi Da, Dong Lou, Emi Nakamura, Haizhou Huang, Matthieu Gomez, Yu Qin, Baolian Wang, Paymon Khorrami, Savitar Sundaresan, and seminar participants at Shanghai University of Finance and Economics, Seoul National University, CICF, Cavalcade Asia-Pacific meeting, Norges Bank, Aalto, INSEAD, the Summer Institute for Finance at SAIF, CIFFP at UIBES, the NBER Conference on the Chinese Economy at Tsinghua University, Georgia State University, and Columbia University for helpful comments, and Jingxuan Chen for excellent research assistance. This paper subsumes work previously circulated as "Riding the Credit Boom" and "Anticipating the Direct Effects of Credit Supply." The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• May 8, 2018
• February 25, 2021
• March 14, 2022