“…A deterioration of intermediary capital raises credit costs, lowering lending and borrowing. Their approach to model credit frictions has become quite popular (e.g., Lendvai et al, 2013;Andreasen et al, 2013;Beqiraj el al., 2016;Rannenberg, 2016), especially to study the effectiveness of unconventional monetary policy in financial crisis (e.g., Dedola et al, 2013;Karadi, 2013, 2015). 13 Alternative models to Gertler and Karadi (2011) and Gertler and Kiyotaki (2011) have been suggested.…”