Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/186064 
Year of Publication: 
2016
Citation: 
[Journal:] Swiss Journal of Economics and Statistics [ISSN:] 2235-6282 [Volume:] 152 [Issue:] 4 [Publisher:] Springer [Place:] Heidelberg [Year:] 2016 [Pages:] 305-318
Publisher: 
Springer, Heidelberg
Abstract: 
In this paper we analyze financial crises, and the interactions of macroprudential policy and credit. Financial crises are recurrent systemic phenomena, often-triggering deep and long-lasting recessions with large reductions in aggregate welfare, output and employment. Importantly for policy, systemic financial crises are typically not random events triggered by exogenous events, but they tend to occur after periods of rapid, strong credit growth. Moreover, a credit crunch tends to follow in a financial crisis with negative aggregate real effects. Macroprudential policy softens the credit supply cycles, with important positive effects on the aggregate real economy in crisis times.
Subjects: 
financial crises
macroprudential policy
credit supply
risk-taking
capital
liquidity
JEL: 
E58
G01
G21
G28
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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