## What Happens During Recessions, Crunches and Busts?

_IMF Working Papers, December 1, 2008_

## Source details

**Canonical URL:** [What Happens During Recessions, Crunches and Busts?](https://www.imf.org/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511)

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## 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

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### 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

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/what-happens-during-recessions-crunches-and-busts-22511_