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What Happens During Recessions, Crunches and Busts?, Marco Terrones, Ayhan Kose, Stijn Claessens

Abstract
We provide a comprehensive empirical characterization of the linkages between key macroeconomic and financial variables around business and financial cycles for 21 OECD countries over the period 1960–2007. In particular, we analyze the implications of 122 recessions, 112 (28) credit contraction (crunch) episodes, 114 (28) episodes of house price declines (busts), 234 (58) episodes of equity price declines (busts) and their various overlaps in these countries over the sample period. Our results indicate that interactions between macroeconomic and financial variables can play major roles in determining the severity and duration of recessions. Specifically, we find evidence that recessions associated with credit crunches and house price busts tend to be deeper and longer than other recessions. JEL Classification Numbers: E32; E44; E51; F42
Table Of Contents
Contents; Executive Summary; Figure A. What Happens During Recessions: Crunches and Busts?; I. Introduction; II. Database and Methodology; A. Database; B. Methodology; III. What Happens During Recessions?; A. Basic Features of Recessions: Duration and Cost; B. Changes in Macroeconomic and Financial Variables; C. Dynamics of Recessions; D. Synchronization of Recessions, Credit Contractions and Asset Price Declines; IV. What Happens During Credit Contractions and Asset Price Declines?; A. Episodes of Credit Contractions; B. Episodes of Declines in House Prices
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (77 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462367894

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