Credit Impulse - DefinitionEdit

The credit impulse is a term coined by Michael Biggs, then an economist at Deutsche Bank, when in 2008 he defined it as the change in new credit issued as % of GDP. He showed that, in most countries, private sector demand (C+I) correlates very closely with the credit impulse and he argued that the important credit variable in terms of forecasting GDP growth is the change in the flow of credit, not the change in the stock of credit.