Using a new country-level panel database, we explore effect of capital inflow surges, credit booms and financial fragility on the probability of banking crises. We find that booms increase the probability of a crisis only in relatively fragile financial systems.
This is an output from the ‘Politics, Finance and Growth’ Project
David Fielding, Johan Rewilak, Credit booms, financial fragility and banking crises, Economics Letters, Volume 136, 2015, Pages 233-236,
Credit booms, financial fragility and banking crises
Published 1 November 2015