Domestic credit growth and international capital flows

Philip Lane and Peter McQuade

No 1566, Working Paper Series from European Central Bank

Abstract: Europe experienced substantial cross-country variation in domestic credit growth and cross border capital flows during the pre-crisis period. We investigate the inter-relations between domestic credit growth and international capital flows over 1993-2008, with a special focus on the 2003-2008 boom period. We establish that domestic credit growth in European countries is strongly related to net debt inflows but not to net equity inflows. This pattern also holds for an extended sample of 54 advanced and emerging economies. JEL Classification: E51, F32, G15

Keywords: financial globalisation; Financial Stability; macro-prudential regulation (search for similar items in EconPapers)
Date: 2013-07
New Economics Papers: this item is included in nep-ban, nep-eur, nep-ifn, nep-mac and nep-opm
Note: 2104363
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Citations: View citations in EconPapers (62)

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Related works:
Journal Article: Domestic Credit Growth and International Capital Flows (2014)
Working Paper: Domestic Credit Growth and International Capital Flows (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20131566

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