What Happens During Recessions, Crunches and Busts?
IMF Working Papers, December 1, 2008
Source details
- Canonical URL
- What Happens During Recessions, Crunches and Busts?
Other formats
Bibliographic details
- Authors: Marco Terrones, Ayhan Kose, Stijn Claessens
- Published: December 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451871326.001
Study scope and data
- Sample: 21 OECD countries
- Sample period: 1960–2007
- Episodes analyzed:
- 122 recessions
- 112 (28) credit contraction (crunch) episodes
- 114 (28) episodes of house price declines (busts)
- 234 (58) episodes of equity price declines (busts)
- Overlaps between the above episodes were examined across the sample period
Core findings
- Interactions between macroeconomic and financial variables can play major roles in determining the severity and duration of recessions.
- Recessions associated with credit crunches and house price busts tend to be deeper and longer than other recessions.
Subject matter and classifications
- Subject: Asset prices, Credit, Housing prices, Oil prices, Stocks
- Keywords: asset price, credit contraction, equity price, house price, price bust, recession episode, WP
- JEL Classification Numbers: E32; E44; E51; F42
Content in this bundle
- _wp08274 — Executive Summary and Section VIII summary