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Financial Cycles :, What? How? When?, Marco Terrones, Ayhan Kose, Stijn Claessens

Abstract
This paper provides a comprehensive analysis of financial cycles using a large database covering 21 advanced countries over the period 1960:1-2007:4. Specifically, we analyze cycles in credit, house prices, and equity prices. We report three main results. First, financial cycles tend to be long and severe, especially those in housing and equity markets. Second, they are highly synchronized within countries, particularly credit and house price cycles. The extent of synchronization of financial cycles across countries is high as well, mainly for credit and equity cycles, and has been increasing over time. Third financial cycles accentuate each other and become magnified, especially during coincident downturns in credit and housing markets. Moreover, globally synchronized downturns tend to be associated with more prolonged and costly episodes, especially for credit and equity cycles. We discuss how these findings can guide future research on various aspects of financial market developments
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; Executive Summary; Figure A. Financial Cycles: Duration and Coincidence; 1. Introduction; II. Database and Methodology; III. What are the Main Features of Financial Cycles?; A. Frequency, Duration, Amplitude and Slope; 1A. Financial Cycles: Basic Features; 1B. Financial Cycles: Basic Features; B. Synchronization of Financial Cycles; 2. Synchronization of Cycles within Countries; 3. Synchronization of Cycles across Countries; IV. When do Financial Cycles Become More Intense?; A. Intense Financial Cycles: Financial Disruptions and Booms
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (69 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613873545

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