 Market Phoenixes and Banking Ducks Are Recoveries Faster in Market-Based Financial Systems?Julien Allard and Rodolphe Blavy No 2011/213, IMF Working Papers from International Monetary Fund Abstract: Recoveries vary considerably across countries: our paper compares recoveries in bank-based and market-based economies and finds that market-based economies experience significantly and durably stronger rebounds than the bank-based ones (in particular the more bank-based economies of continental Europe). Further, stronger recoveries also tend to be associated with broader economic flexibility. Our findings suggest that dealing with bank sector vulnerabilities is paramount to support the recovery. In the medium term, structural policies to deepen financial markets are useful, but need to be complemented with structural measures to address rigidities more broadly in the real economy. Keywords: WP; economy; market-based economy; bank; product market; financial intermediation; economic crises; recoveries; banking sector; economies matter; market financing; goods market regulation; bank-based economy; market phoenix; recession amplitude; financial system structure; private sector; Economic recovery; Business cycles; Financial sector; Global (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2011/213 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
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