{
  "title": "What Happens During Recessions, Crunches and Busts?",
  "publication": "IMF Working Papers, December 1, 2008",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511/index.md",
  "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.",
  "sections": [
    {
      "heading": "Study scope and data",
      "content": "- Sample: 21 OECD countries\n- Sample period: 1960–2007\n- Episodes analyzed:\n  - 122 recessions\n  - 112 (28) credit contraction (crunch) episodes\n  - 114 (28) episodes of house price declines (busts)\n  - 234 (58) episodes of equity price declines (busts)\n- Overlaps between the above episodes were examined across the sample period"
    },
    {
      "heading": "Core findings",
      "content": "- Interactions between macroeconomic and financial variables can play major roles in determining the severity and duration of recessions.\n- Recessions associated with credit crunches and house price busts tend to be deeper and longer than other recessions."
    },
    {
      "heading": "Subject matter and classifications",
      "content": "- Subject: Asset prices, Credit, Housing prices, Oil prices, Stocks\n- Keywords: asset price, credit contraction, equity price, house price, price bust, recession episode, WP\n- JEL Classification Numbers: E32; E44; E51; F42\n\n---\n\n Content in this bundle\n\n- wp08274 — Executive Summary and Section VIII summary\n  - wp08274 — Executive Summary and Section VIII summary (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08274 — Executive Summary and Section VIII summary (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511/bundle-manifest.json)",
    "Authors: Marco Terrones, Ayhan Kose, Stijn Claessens",
    "Published: December 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451871326.001",
    "Sample: 21 OECD countries",
    "Sample period: 1960–2007",
    "Episodes analyzed:",
    "Overlaps between the above episodes were examined across the sample period",
    "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: 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",
    "**_wp08274 — Executive Summary and Section VIII summary**"
  ],
  "related": [
    {
      "title": "_wp08274 — Executive Summary and Section VIII summary",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2008/_wp08274.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2008/_wp08274.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2008/_wp08274.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-18T10:18:50.565Z"
}