An Anatomy of Credit Booms: Evidence From Macro Aggregates and Micro Data

WPIEA2008226 Image
Price:  $18.00

Author/Editor: Marco Terrones, Enrique G. Mendoza
Release Date: © September, 2008
ISBN : 978-1-45187-084-8
Stock #: WPIEA2008226
English
Stock Status: Available

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Description

We study the characteristics of credit booms in emerging and industrial economies. Macro data show a systematic relationship between credit booms and economic expansions, rising asset prices, real appreciations and widening external deficits. Micro data show a strong association between credit booms and leverage ratios, firm values, and banking fragility. We also find that credit booms are larger in emerging economies, particularly in the nontradables sector; most emerging markets crises are associated with credit booms; and credit booms in emerging economies are often preceded by large capital inflows but not by financial reforms or productivity gains.

Taxonomy

Asset prices , Business cycles , Capital markets , Economic development , Financial institutions and markets




More publications in this series: Working Papers


More publications by: Marco Terrones ; Enrique G. Mendoza