Market Phoenixes and Banking Ducks Are Recoveries Faster in Market-Based Financial Systems?
IMF Working Papers, September 1, 2011
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- Market Phoenixes and Banking Ducks Are Recoveries Faster in Market-Based Financial Systems?
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Bibliographic details
- Authors: Julien Allard, Rodolphe Blavy
- Published: September 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781463902292.001
Authors and publication
- By Julien Allard, Rodolphe Blavy
- September 1, 2011
- IMF Working Papers; Working Paper No. 2011/213; Issue: 213; Volume: 2011; Pages: 26
- DOI: https://doi.org/10.5089/9781463902292.001
- Stock No: WPIEA2011213
- ISBN: 9781463902292
- ISSN: 1018-5941
- Preview citation shown: Julien Allard, and Rodolphe Blavy. "Market Phoenixes and Banking Ducks Are Recoveries Faster in Market-Based Financial Systems?", IMF Working Papers 2011, 213 (2011), accessed 9/14/2026, https://doi.org/10.5089/9781463902292.001
Key findings
- Recoveries vary considerably across countries.
- Market-based economies experience significantly and durably stronger rebounds than bank-based economies (in particular the more bank-based economies of continental Europe).
- Stronger recoveries tend to be associated with broader economic flexibility.
Analysis emphasis
- The paper compares recoveries in bank-based and market-based economies.
- It highlights the role of financial system structure (bank-based vs. market-based) in shaping the strength and durability of economic rebounds.
- It associates stronger recoveries with broader measures of economic flexibility beyond the financial system.
Policy implications and recommendations
- Dealing with bank sector vulnerabilities is paramount to support the recovery.
- In the medium term, structural policies to deepen financial markets are useful.
- Structural measures to address rigidities more broadly in the real economy need to complement financial-market deepening.
Subject areas and keywords
- Subject: Bank credit, Business cycles, Economic growth, Economic recovery, Economic sectors, Financial crises, Financial sector, National accounts
- Keywords: bank, bank-based economy, banking sector, Business cycles, economic crises, Economic recovery, economies matter, economy, financial intermediation, Financial sector, financial system structure, Global, goods market regulation, market financing, market phoenix, market-based economy, private sector, product market, recession amplitude, recoveries, WP
Source: IMF Working Paper landing page for "Market Phoenixes and Banking Ducks Are Recoveries Faster in Market-Based Financial Systems?"
Content in this bundle
- 1. Private Sector Financing, 2002-2007