European Parliament Library

Creditless Recoveries, Abdul Abiad, Giovanni Dell'Ariccia, Grace Li

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
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Related Literature; III. Preliminary Analysis; A. Identifying Recoveries; B. How Common Are Creditless Recoveries?; 1. Creditless Recoveries over Time; 1. Banking Crises and the Relative Frequency of Creditless Recoveries; 2. Crises and the Relative Frequency of Creditless Recoveries; C. How are Creditless Recoveries Different?; 3. Creditless Recoveries and Growth Performance; D. Slicing the Miracles; 4. Demand and Factor Input Contributions During Creditless Recoveries; IV. Evidence from Sectoral Data; A. Methodology
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (47 p.)
Specific Material Designation
Form Of Item

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