01690cas a2200241 a 4500 AALejournalIMF011437 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463927196 1018-5941 BD-DhAAL BD-DhAAL Podpiera, Jiri. Using Credit Subsidies to Counteract a Credit Bust : Evidence From Serbia / Jiri Podpiera. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (21 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 Emerging markets are particularly vulnerable to boom-bust credit cycles, due to excessive capital flows, shallow equity markets, and companies' high leverage and open FX positions. While the policy debate on how to respond to boom-bust credit cycles remains unsettled, it has been conjectured that credit subsidies may provide a particularly effective policy tool to counter a credit bust. This paper reports on a rare policy experiment where credit subsidies were used to buffer the impact of the global financial crisis on Serbia in 2009. Model simulations suggest that credit subsidies in Serbia helped to mitigate the slump in output. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2011/285 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/285/001.2011.issue-285-en.xml IMF e-Library