An Anatomy of Credit Booms: Evidence From Macro Aggregates and Micro Data
IMF Working Papers, September 1, 2008
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- An Anatomy of Credit Booms: Evidence From Macro Aggregates and Micro Data
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Bibliographic details
- Authors: Marco Terrones, Enrique G. Mendoza
- Published: September 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451870848.001
Summary
- Authors: Marco Terrones, Enrique G. Mendoza
- Date: September 1, 2008
- Series: Working Paper No. 2008/226
- Pages: 50
- DOI: https://doi.org/10.5089/9781451870848.001
- ISSN: 1018-5941
- ISBN: 9781451870848
- Core research question: Characterize credit booms in emerging and industrial economies using macro aggregates and micro data.
Macro-level findings
- Credit booms are systematically associated with:
- economic expansions
- rising asset prices
- real appreciations
- widening external deficits
- Additional macro-level observations:
- Credit booms are larger in emerging economies, particularly in the nontradables sector.
- Most emerging markets crises are associated with credit booms.
Micro-level findings
- Micro data show a strong association between credit booms and:
- leverage ratios
- firm values
- banking fragility
External flows and structural factors
- Credit booms in emerging economies are often preceded by large capital inflows.
- Credit booms in emerging economies are not typically preceded by financial reforms or productivity gains.
Subjects and keywords
- Subject: Capital inflows, Credit, Credit booms, Financial crises, Sudden stops
- Keywords: business cycle, credit boom, credit boom event, credit booms in Chile, credit expansion, credit issuance, credit transmission channel, credit transmission mechanisms, credit-GDP ratio, current account, dynamics of macro, private sector, WP
Publication identifiers and metadata
- Volume: 2008
- Issue: 226
- Stock No: WPIEA2008226
IMF Working Paper — An Anatomy of Credit Booms: Evidence From Macro Aggregates and Micro Data (Terrones and Mendoza, September 1, 2008).