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Credit Booms and Macroeconomic Dynamics :, Stylized Facts and Lessons for Low-Income Countries, Marco Arena, Serpil Bouza, Era Dabla-Norris, Kerstin Gerling, Lamin Njie

Using a comprehensive database on bank credit, covering 135 developing countries over the period 1960–2011, we identify, document, and compare the macro-economic dynamics of credit booms across low- and middle-income countries. The results suggest that while the duration and magnitude of credit booms is similar across country groups, macro-economic dynamics differ somewhat in low-income countries. We further find that surges in capital inflows are associated with credit booms. Moreover, credit booms associated with banking crises exhibit distinct macroeconomic dynamics, while also reflecting a potentially large deviation of credit from country fundamentals. These results suggest that low-income countries should remain mindful of the inter-linkages between financial liberalization, increased cross-border banking activities, and rapid credit growth
Table Of Contents
Cover; Abstract; Contents; I. Introduction; Figures; 1.Credit-to-GDP: Levels and Growth; II. Credit Booms: Literature Review; III. Credit Boom Episodes, Event Study, and Empirical Assessment; A. Identification of Credit Boom Episodes: Stylized Facts; 5. Correlation between Credit Booms: Real Credit per Capita and Credit-to-GDP (Mendoza and Terrones' methodology); C. Potential Drivers of Credit Booms; 8. Credit booms and Banking Supervision; D. Empirical Analysis of the Incidence of Credit Boom; 10. Marginal Effects Evaluated at Medians; 4. Increase in the Probability of a Credit Boom
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (48 p.)
Specific Material Designation
Form Of Item

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