Isabella Müller

Isabella Müller
Current Position

since 10/18

Economist in the Department of Financial Markets

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • real effects of financial intermediation
  • financial intermediation
  • political economy of banking
  • financial stability
  • macroprudential policy

Isabella Müller joined the Department of Financial Markets as a doctoral student in October 2018. Her research focuses on financial intermediation and the political economy of banking.

Isabella Müller received her bachelor's degree from Maastricht University and her master's degree from Leipzig University. She also spent a semester at Universidad de Salamanca, Spain.

Your contact

Isabella Müller
Isabella Müller
Mitglied - Department Financial Markets
Send Message +49 345 7753-761


Working Papers


Trade Shocks, Credit Reallocation and the Role of Specialisation: Evidence from Syndicated Lending

Isabella Müller

in: IWH Discussion Papers, No. 15, 2020


This paper provides evidence that banks cut lending to US borrowers as a consequence of a trade shock. This adverse reaction is stronger for banks with higher ex-ante lending to US industries hit by the trade shock. Importantly, I document large heterogeneity in banks‘ reaction depending on their sectoral specialisation. Banks shield industries in which they are specialised in and at the same time reduce the availability of credit to industries they are not specialised in. The latter is driven by low-capital banks and lending to firms that are themselves hit by the trade shock. Banks‘ adjustments have adverse real effects.

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