An Anatomy of Credit Booms
Author | : Mr.Marco Terrones |
Publisher | : International Monetary Fund |
Total Pages | : 52 |
Release | : 2008-09-01 |
ISBN-10 | : 9781451870848 |
ISBN-13 | : 1451870841 |
Rating | : 4/5 (48 Downloads) |
Download or read book An Anatomy of Credit Booms written by Mr.Marco Terrones and published by International Monetary Fund. This book was released on 2008-09-01 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.