A cross-country financial accelerator: evidence from North America and Europe
Mody, Ashoka, Sarno, Lucio and Taylor, Mark P.. (2007) A cross-country financial accelerator: evidence from North America and Europe. Journal of International Money and Finance, Vol.26 (No.1). pp. 149-165. ISSN 0261-5606Full text not available from this repository.
Official URL: http://dx.doi.org/10.1016/j.jimonfin.2006.10.009
A growing literature has examined the importance of credit-market imperfections for macroeconomic fluctuations, the so-called 'financial accelerator.' A related literature has provided evidence of international and regional comovements in macroeconomic fluctuations. We tie together these strands of the literature in that we investigate the importance of both cross-country and country-specific credit cycles in explaining output fluctuations. Using data for four major economies and two world regions from 1973 to 2001, we find that both regional and country-specific components of indicators of credit availability are powerful in explaining output movements. This research provides the first empirical evidence of a cross-country financial accelerator. Published by Elsevier Ltd.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HG Finance|
|Divisions:||Faculty of Social Sciences > Warwick Business School|
|Journal or Publication Title:||Journal of International Money and Finance|
|Official Date:||February 2007|
|Number of Pages:||17|
|Page Range:||pp. 149-165|
|Access rights to Published version:||Restricted or Subscription Access|
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