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It has been argued that credit-to-GDP gaps (credit gap) are useful early warning indicators for banking crises. In addition, the Basel Committee on Banking Supervision has also advocated using these gaps - estimated using a one-sided Hodrick-Prescott filter with a smoothing parameter of 400,000...
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output in Indonesia. Having incorporated a possible structural break following the aftermath of the 1997-98 Asian Crisis, the …
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