EconPapers    
Economics at your fingertips  
 

Credit crises, money, and contractions: A historical view

Michael Bordo () and Joseph Haubrich ()

No 908, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: The relatively infrequent nature of major credit distress events makes a historical approach particularly useful. Using a combination of historical narrative and econometric techniques, we identify major periods of credit distress from 1875 to 2007, examine the extent to which credit distress arises as part of the transmission> of monetary policy, and document the subsequent effect on output. Using turning points defined by the Harding-Pagan algorithm, we identify and compare the timing, duration, amplitude, and comovement of cycles in money, credit, and output. Regressions show that financial distress events exacerbate business cycle downturns both in the nineteenth and twentieth centuries and that a confluence of such events makes recessions even worse.

Keywords: Monetary policy; Credit; Business cycles (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-his, nep-mac and nep-mon
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://www.clevelandfed.org/~/media/content/newsr ... view%20pdf.pdf?la=en Full text (application/pdf)

Related works:
Journal Article: Credit crises, money and contractions: An historical view (2010) Downloads
Working Paper: Credit Crises, Money and Contractions: an historical view (2009) Downloads
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:fip:fedcwp:0908

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().

 
Page updated 2019-10-16
Handle: RePEc:fip:fedcwp:0908