How to order
IMF Publications

Working Papers in full text
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All


Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile



What Happens During Recessions, Crunches, and Busts?

Author/Editor: Claessens, Stijn | Kose, M. Ayhan | Terrones, Marco
Authorized for Distribution: December 1, 2008
Electronic Access: Free Full Text (PDF file size is 1,007KB)
Use the free Adobe Acrobat Reader to view this PDF file.
 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: 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
 
Series: Working Paper No. 08/274
Subject(s): Economic recession | Business cycles | Financial crisis | Credit | Housing prices | Stock prices | Oil prices | Databases | Economic models
Author's keyword(s): Business cycles | recessions | credit crunches | house prices | equity prices | busts
 
English  
    Published:   December 1, 2008        
            Format:   Paper
    Stock No:   WPIEA2008274   Pages:   75
    Price:   US$18.00
       
     
Please address any questions about this title to publications@imf.org.