We study the synchronization of credit booms and busts among 12 major European economies and the United States between … 1972-2011. We propose a regression-based procedure to test whether boom-bust phases of credit cycles coincide across … countries and to cluster countries with positively synchronized credit cycles. We find strong evidence against the existence of …

The Basel credit-to-GDP gap is the single most popular measure of excessive credit growth and the financial cycle in … general. It is based, however, on a purely statistical understanding of excessiveness: Growth is excessive if the credit …-to-GDP ratio (i.e. the ratio of credit to nominal GDP) is significantly above its long-term trend. This paper presents an …

Network (IBRN), established in 2012, brings together researchers from around the world with access to micro-data on individual …

macroeconomic fluctuations. Second, a higher share of domestic credit to GDP coincides with higher volatility in the short run …

. The results show that excessive credit growth and high returns of banks’ stocks are the best early warning indicators …

vector autoregression that allows us to capture regime-dependent dynamics conditional on the tightness of US credit market … access to credit to one characterized by tight credit whenever the bond risk premium exceeds a critical threshold. US … financial shocks have an insignificant effect on the global economy when borrowers have unconstrained access to credit. On the …

and trade literature. It tests whether the resource sectors’ lower demand for short-term external credit negatively … affects financial development. This is done with cross-sectional and panel analysis, using an instrument for credit demand …’ credit demand drives the detrimental effect of resources on finance. …