Credit Booms and Macroeconomic Dynamics : Stylized Facts and Lessons for Low-Income Countries /

Using a comprehensive database on bank credit, covering 135 developing countries over the period 1960-2011, we identify, document, and compare the macro-economic dynamics of credit booms across low- and middle-income countries. The results suggest that while the duration and magnitude of credit boom...

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Autor principal: Arena, Marco
Altres autors: Bouza, Serpil, Dabla-Norris, Era, Gerling, Kerstin
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2015.
Col·lecció:IMF Working Papers; Working Paper ; No. 2015/011
Accés en línia:Full text available on IMF
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Sumari:Using a comprehensive database on bank credit, covering 135 developing countries over the period 1960-2011, we identify, document, and compare the macro-economic dynamics of credit booms across low- and middle-income countries. The results suggest that while the duration and magnitude of credit booms is similar across country groups, macro-economic dynamics differ somewhat in low-income countries. We further find that surges in capital inflows are associated with credit booms. Moreover, credit booms associated with banking crises exhibit distinct macroeconomic dynamics, while also reflecting a potentially large deviation of credit from country fundamentals. These results suggest that low-income countries should remain mindful of the inter-linkages between financial liberalization, increased cross-border banking activities, and rapid credit growth.
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Descripció física:1 online resource (47 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students