Arena, Marco.
Credit Booms and Macroeconomic Dynamics Stylized Facts and Lessons for Low-Income Countries / Marco Arena. [electronic resource] : Marco Arena. - Washington, D.C. : International Monetary Fund, 2015. - 1 online resource (47 p.) - IMF Working Papers; Working Paper ; No. 15/11 . - IMF Working Papers; Working Paper ; No. 15/11 .
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.
1484356861 : 18.00 USD
1018-5941
10.5089/9781484356869.001 doi
Banking
Booms
Credit Boom
Credit
Emerging Market Economies
Financial Markets and the Macroeconomy
Bahrain
Bhutan
Burkina Faso
Congo, Democratic Republic of the
Guinea-Bissau
Credit Booms and Macroeconomic Dynamics Stylized Facts and Lessons for Low-Income Countries / Marco Arena. [electronic resource] : Marco Arena. - Washington, D.C. : International Monetary Fund, 2015. - 1 online resource (47 p.) - IMF Working Papers; Working Paper ; No. 15/11 . - IMF Working Papers; Working Paper ; No. 15/11 .
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.
1484356861 : 18.00 USD
1018-5941
10.5089/9781484356869.001 doi
Banking
Booms
Credit Boom
Credit
Emerging Market Economies
Financial Markets and the Macroeconomy
Bahrain
Bhutan
Burkina Faso
Congo, Democratic Republic of the
Guinea-Bissau