Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277319 
Authors: 
Year of Publication: 
2015
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 12 [Issue:] 1 [Year:] 2015 [Pages:] 51-72
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
We investigate the propagation of contagion through banks' balance sheets in a two-country model. We simulate an increase in non-performing loans in one bank, and study the effects on other banks and the macro-economy of each country. We show that credit crunches destabilize each economy in the short run and in the long run reduce potential output. We quantify this loss.
Subjects: 
credit crunch
contagion
stock-flow consistent models
JEL: 
E32
E37
E51
G33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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