01742cas a2200253 a 4500 AALejournalIMF003715 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861891 1018-5941 BD-DhAAL BD-DhAAL Loayza, Norman. Financial Development, Financial Fragility, and Growth / Norman Loayza, Romain Ranciere. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the apparent contradictions between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of financial depth as measured by, for instance, private domestic credit and liquid liabilities. On the other hand, the banking and currency crisis literature finds that monetary aggregates, such as domestic credit, are among the best predictors of crises and their related economic downturns. This paper accounts for these contrasting effects based on the distinction between the short- and long-run effects of financial intermediation. Mode of access: Internet Ranciere, Romain. IMF Working Papers; Working Paper ; No. 2005/170 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/170/001.2005.issue-170-en.xml IMF e-Library