02009cas a2200253 a 4500 AALejournalIMF011346 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463922627 1018-5941 BD-DhAAL BD-DhAAL Elekdag, Selim. Rapid Credit Growth : Boon or Boom-Bust? / Selim Elekdag, Yiqun Wu. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (42 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 Episodes of rapid credit growth, especially credit booms, tend to end abruptly, typically in the form of financial crises. This paper presents the findings of a comprehensive event study focusing on 99 credit booms. Loose monetary policy stances seem to have contributed to the build-up of credit booms across both advanced and emerging economies. In particular, domestic policy rates were below trend during the pre-peak phase of credit booms and likely fuelled macroeconomic and financial imbalances. For emerging economies, while credit booms are associated with episodes of large capital inflows, international interest rates (a proxy for global liquidity) are virtually flat during these periods. Therefore, although external factors such as global liquidity conditions matter, and possibly increasingly so over time, domestic factors (especially monetary policy) also appear to be important drivers of real credit growth across emerging economies. Mode of access: Internet Wu, Yiqun. IMF Working Papers; Working Paper ; No. 2011/241 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/241/001.2011.issue-241-en.xml IMF e-Library