BANKING SECTOR STABILITY DURING THE PROCESS OF EURO ADOPTION

Bilge Kagan Ozdemir

Anadolu University Journal of Social Sciences, 2009, vol. 9, issue 1, pages 123-1236

Abstract: In this paper, reasons of the rapid credit expansion in three biggest new European Union member states (i.e., Czech Republic, Hungary and Poland) are investigated during the process of Euro Adoption. Credit expansion is identified as a boom, if it exceeds the standard deviation of the country’s credit fluctuations around trend by a factor of 1.75. Following the literature on credit booms, the trend is estimated by using Hodrick-Prescot (HP) filter. Furthermore, to investigate the direction of the causal relationship between the credit expansion and economic growth, the traditional Granger causality test is applied in an vector error correction (VEC) context.

Keywords: Credit Booms; Euro Area; Banking Sector Stability. (search for similar items in EconPapers)
JEL-codes: F36 G21 (search for similar items in EconPapers)
Date: 2009
View list of references

Downloads: (external link)
http://www.anadolu.edu.tr/arastirma/hakemli_dergil ... 009-1/2009_01_07.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:and:journl:v:9:y:2009:i:1:p:123-136

Access Statistics for this article

Anadolu University Journal of Social Sciences is edited by Ramazan Geylan

More articles in Anadolu University Journal of Social Sciences from Anadolu University
Contact information at EDIRC.
Series data maintained by Social Sciences Institute (). This e-mail address is bad, please contact .