Crises, credit booms and monetary regime

Youssef Ghallada, Alexandre Girard and Kim Oosterlinck

Economics Bulletin, 2021, vol. 41, issue 3, 1431-1443

Abstract: In theory credit booms, and the crises associated to these booms, should occur more frequently in Fiat monetary regimes than in regimes, such as the Gold Standard, where money creation is constrained. In this note, we investigate whether the importance of the credit boom factor, as an early warning indicator (EWI) of systemic financial crises, varies across monetary regimes for a sample of 17 developed countries over the 1870-2016 period. We find no evidence of a difference between monetary regime for credit-driven crises and this both for the occurrence and the severity of crises.

Keywords: Crises Determinants; Early Warning Indicator (EWI); Financial Crises; Monetary Regimes; Boom and Bust Cycles (search for similar items in EconPapers)
JEL-codes: E5 N1 (search for similar items in EconPapers)
Date: 2021-09-17
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P122.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: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-21-00021

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().