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Credit Cyclicality in Chile :, A Cross-Country Analysis, Ludvig Söderling

Abstract
This paper analyzes the determinants of credit cyclicality. It constructs a financial development index and studies whether it affects the amplitude of impulse responses to shocks to output, terms of trade, global liquidity, and global risk appetite. The paper uses both country-specific VARs for cross-country analyses and panel VARs to compare impulse responses between various country groupings. The study finds evidence that financial development-especially stronger creditor rights-can mitigate credit cyclicality, given that the response of credit to output or terms of trade shocks is stronger in countries with weaker financial systems
Table Of Contents
Contents; I. Introduction; Figures; 1. Credit to the Private Sector; 2. Household debt Indicators; 3. Correlation, Real GDP Growth; II. Theoretical Premise: Financial Friction and the Financial Accelerator; III. Measuring Financial Friction; 4. Financial Development Index; IV. Cross-Country Analysis of Impulse Responses; 5. Overall Financial Development Index; A. Comparing Impulse Response Functions; B. Cross-Country Regressions; 6. Household Credit Impulse Responses to Output Shocks, Full Sample; 7. Household Credit Impulse Responses to Output Shocks, Subsample
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (23 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781283512640

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