02076cas a2200277 a 4500 AALejournalIMF014954 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484356869 1018-5941 BD-DhAAL BD-DhAAL Arena, Marco. Credit Booms and Macroeconomic Dynamics : Stylized Facts and Lessons for Low-Income Countries / Marco Arena, Serpil Bouza, Era Dabla-Norris, Kerstin Gerling. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (47 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 Using a comprehensive database on bank credit, covering 135 developing countries over the period 1960-2011, we identify, document, and compare the macro-economic dynamics of credit booms across low- and middle-income countries. The results suggest that while the duration and magnitude of credit booms is similar across country groups, macro-economic dynamics differ somewhat in low-income countries. We further find that surges in capital inflows are associated with credit booms. Moreover, credit booms associated with banking crises exhibit distinct macroeconomic dynamics, while also reflecting a potentially large deviation of credit from country fundamentals. These results suggest that low-income countries should remain mindful of the inter-linkages between financial liberalization, increased cross-border banking activities, and rapid credit growth. Mode of access: Internet Bouza, Serpil. Dabla-Norris, Era. Gerling, Kerstin. IMF Working Papers; Working Paper ; No. 2015/011 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/011/001.2015.issue-011-en.xml IMF e-Library