BibTex format
@article{Goldman:2026,
author = {Goldman, J and Iyer, R and Nanda, R},
journal = {Journal of Finance},
title = {Amplifying a fiscal stimulus: the role of banks},
year = {2026}
}
RIS format (EndNote, RefMan)
TY - JOUR
AB - Exploiting increases in US defense spending following the 9/11 attacks, we show that the procurement-driven fiscal stimulus led to lower non-performing loans at banks.In turn, constrained banks responded by increasing lending to small businesses in not-directly-impacted counties. We find the additional economic activity enabled by the increased lending capacity is quantitatively important– amplification from this ‘credit multiplier’ is about 10%-15% as large as typical fiscal multipliers estimated inthe literature. Since intermediaries are more likely to face constraints in times when a fiscal stimulus is needed, this ’credit multiplier’ can substantially amplify a stimulus’overall impact in downturns.
AU - Goldman,J
AU - Iyer,R
AU - Nanda,R
PY - 2026///
SN - 0022-1082
TI - Amplifying a fiscal stimulus: the role of banks
T2 - Journal of Finance
ER -