Foreign flows into emerging market economies have surged in the post-crisis period. The surge in gross inflows has come alongside a rapid creation of credit, an excessive increase in stock and housing prices and continued pressure towards further appreciation of the currency in emerging market economies. These developments have reignited the debate on capital inflow management.
Gross inflows and the incidence of credit booms
César Calderón, Megumi Kubota, 16 December 2012
Bank credit during the 2008 financial crisis: A cross-country comparison
Ari Aisen, Michael Franken, 28 May 2010
Rarely has an episode of financial turmoil generated such economic havoc as the 2008 financial crisis. The wealth destruction was unique – estimated at $50 trillion, the equivalent to one year of world GDP (Loser 2009) – which resulted from the plunge in the value of stocks, bonds, property, and other assets.
Credit booms go wrong
Alan Taylor, Moritz Schularick, 8 December 2009
The financial crisis of 2008–09 has reignited interest in understanding the crucial roles money and credit play in the creation, propagation, and amplification of economic shocks. Such research on the importance of financial structure promises to reopen a number of fundamental fault lines in modern macroeconomic thinking.
The US subprime mortgage crisis: A credit boom gone bad?
Giovanni Dell'Ariccia, Luc Laeven, Deniz Igan, 4 February 2008
Recent events in the market for mortgage-backed securities have placed the US subprime mortgage industry in the spotlight. Over the last decade, this market has expanded dramatically, evolving from a small niche segment into a major portion of the overall US mortgage market.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
Reichlin, Turner, Woodford
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí