13; Shin, H.S. 2011, “Macroprudential policies beyond Basel III”, in Macroprudential regulation and policy, BIS papers 60. 3  Kiyotaki, N. and Moore, J. (1997), “Credit Cycles”, Journal of Political Economy.
2  BIS central bankers’ speeches  negative shocks (Lorenzoni (2008),4 Bianchi and Mendoza (2010),5 Korinek and Jeanne (2010).6 In Brunnermeier and Sannikov (2014)7 the same “collateral amplification” mechanism is taken a step further and shown to generate endogenous leverage and volatility cycles. Long booms boost bank capital ratios to such an extent that credit availability stops being a constraint on economic activity.