Loans and trade payables positively commove in response to changes in sales or the cost of sales, implying the two are complements.
We not only find that trade credit and loans positively commove in response to loan shocks, which is what previous studies have found, but also that trade credit and loans positively commove in response to trade credit shocks, which has not been previously documented.
If it is true that trade credit and loans positively commove, a shock in one market (the loan market or the trade credit market) is amplified by the other.
52: "Non entra Amor a rinovar nel seno, / che ragion congelo la fiamma antica; / v'entra pietate in quella vece almeno, / pur compagna d'Amor, benche pudica / e lui commove
in guisa tal ch'a freno / puo ritener le lagrime a fatica.