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Federal Reserve Bank of San Francisco: Study Finds Feedback Loop Between Credit and Information Can Worsen Economic Downturns
July 23, 2025
SAN FRANCISCO, California, July 23 (TNSLrpt) -- The Federal Reserve Bank of San Francisco on July 15, 2025, released a report by Ding Dong, Allen Hu, Zhaorui Li, and Zheng Liu titled 'Information Acquisition and the Finance-Uncertainty Trap,' revealing how the interplay between firms' access to credit and their efforts to acquire economic information can amplify and extend business cycle fluctuations.

The authors draw on novel indicators of information acquisition to . . .

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