Credit conditions and recoveries from financial crises

Abstract

As the worst of the 2008 global financial crisis appears to be behind us, the focus has shifted to the prospects of recovery. Commentary in the financial press has typically revolved around predicting whether the path of output following the trough of the recession will be U-shaped, V-shaped, W-shaped (a double-dip recession), or L-shaped (a very sluggish recovery). (continued on page 2) Inflation Targeting in Emerging Economies

The financial and fiscal stress interconnectedness: The case of G5 economies

“…According to this paper, financial cycles last about sixteen years, with gradually increasing life span since the mid 80's. Kannan (2012) study the effects on the economy's recovery phase from a recession, when a financial crisis is to be blamed for this recessionary period.…”

The Credit-Output Relationship During the Recovery from Recession

“…One is Kannan (2012), who uses the same industrial dataset we use to analyze the sectoral response to financial crises. Kannan (2012) concludes that sectors with higher financial dependence in the RZ sense display slower recoveries in the aftermath of financial crises.…”

Exploring the effects of financial and fiscal vulnerabilities on G7 economies: Evidence from SVAR analysis

“…They specify the duration of the financial cycles to be about sixteen years, following an increasing tendency since the mid 1980's. In a similar vein, Kannan (2012) study the effects on the economy's recovery phase from a recessionary period, when the latter is the outcome of a financial crisis incidence. His research is based on industry -level data, specializing on firms that heavily rely on external finance for their operations.…”