Do credit supply shocks have asymmetric effects?

Abstract They do. Partly. We identify credit supply shocks via sign restrictions in a Bayesian VAR and separate them into positive negative. Using local projections, we find that leave notably different prints private debt, mortgage debt-to-GDP, as opposed to negative shocks. This pattern is caused by the response of household debt. Furthermore, evidence are driving force behind boom-bust cycles. Yet, developments cycle cannot explain strong persistent debt; but house prices tend to. However, if abstract from potential asymmetries, get rather mild results, which underestimate true effects