Global Liquidity and Household Credit Growth
Berrak Bahadir (bbahadir@fiu.edu) and
Neven Valev (nvalev@gsu.edu)
Additional contact information
Berrak Bahadir: Florida International University
Neven Valev: Georgia State University
Open Economies Review, 2023, vol. 34, issue 5, No 5, 1039-1061
Abstract:
Abstract We show that global liquidity contributes to household credit growth across countries. We are interested in that link as household credit growth - more so than growth in other types of credit - has contributed to financial crises. The effect of global liquidity on household credit growth is particularly strong in countries that are more closely integrated with the world economy as well as in those with a greater level of financial development and more open capital markets. These are the types of countries that were most strongly affected during the global financial crisis. We also find tentative evidence that countries with a greater presence of foreign banks and those with more concentrated banking systems experience a closer link between global liquidity and household credit.
Keywords: Consumer credit; Household credit; Global liquidity (search for similar items in EconPapers)
JEL-codes: E3 G21 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:
Downloads: (external link)
http://link.springer.com/10.1007/s11079-022-09708-z Abstract (text/html)
Access to full text is restricted to subscribers.
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:kap:openec:v:34:y:2023:i:5:d:10.1007_s11079-022-09708-z
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2
DOI: 10.1007/s11079-022-09708-z
Access Statistics for this article
Open Economies Review is currently edited by G.S. Tavlas
More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).