Do Banks Pass Through Credit Expansions?

PLA today posts "Do Banks Pass Through Credit Expansions?", which attributes the overall failure of cheap central bank credit to stimulate card issuers' lending to a mismatch between the issuers' marginal propensity to lend (they prefer to raise lines for good risks) and obligors' marginal propensity to borrow (line increases are most sought and used by the not-so-good risks).  Along the way to this macroeconomic conclusion, the paper presents a lot of interesting information about issuer and obligor behavior.  We look forward to your comments.