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
Stock Status: On back-order

Languages and formats available



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.


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