Creditless Recoveries

WPIEA2011058 Image
Price:  $18.00

Author/Editor: Giovanni Dell'Ariccia, Bin (Grace) Li, Abdul Abiad
Release Date: © March, 2011
ISBN : 978-1-45522-102-8
Stock #: WPIEA2011058
English
Stock Status: On back-order

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Description

Recoveries that occur in the absence of credit growth are often dubbed miracles and named after mythical creatures. Yet these are not rare animals, and are not always miracles. About one out of five recoveries is "creditless", and average growth during these episodes is about a third lower than during "normal" recoveries. Aggregate and sectoral data suggest that impaired financial intermediation is the culprit. Creditless recoveries are more common after banking crises and credit booms. Furthermore, sectors more dependent on external finance grow relatively less and more financially dependent activities (such as investment) are curtailed more during creditless recoveries.

Taxonomy

Business cycles , Economic development , Economic sectors , Financial crisis , International financial system , Private sector




More publications in this series: Working Papers


More publications by: Giovanni Dell'Ariccia ; Bin (Grace) Li ; Abdul Abiad