Creditless Recoveries

Author/Editor:

Abdul d Abiad ; Giovanni Dell'Ariccia ; Grace B Li

Publication Date:

March 1, 2011

Electronic Access:

Download PDF. 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:

Recoveries that occur in the absence of credit growth are often dubbed miracles and named after mythical creatures. Yet these are not rare animals, and are not always miracles. About one out of five recoveries is "creditless", and average growth during these episodes is about a third lower than during "normal" recoveries. Aggregate and sectoral data suggest that impaired financial intermediation is the culprit. Creditless recoveries are more common after banking crises and credit booms. Furthermore, sectors more dependent on external finance grow relatively less and more financially dependent activities (such as investment) are curtailed more during creditless recoveries.

Series:

Working Paper No. 11/58

Subject:

English

Publication Date:

March 1, 2011

ISBN/ISSN:

9781455221028/1018-5941

Stock No:

WPIEA2011058

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

30

Please address any questions about this title to publications@imf.org