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Short and long run growth effects of financial crises

På svenska

Author

Editor

  • Marco Gallegati
  • Willi Semmler

Summary, in English

Growth theory predicts that poor countries will grow faster than rich countries. Yet, growth in developing countries has been consistently lower than growth in developed countries. The poor economic performance of developing countries coincides with both long-lasting and short-lived financial crises. In this paper, we analyze to what extent financial crises can explain low growth rates in developing countries. We distinguish between inflation, currency, banking, debt, and stock-market crises and separate the short- and long-run effects of them. Our results show that financial crises have reduced growth and that the policy decisions have caused them to be worsened and/or extended.

Publishing year

2014

Language

English

Publication/Series

Wavelet Applications in Economics and Finance

Document type

Book chapter

Publisher

Springer

Topic

  • Economics and Business

Keywords

  • growth
  • financial crisis
  • developing countries
  • short run
  • long run

Status

Published

ISBN/ISSN/Other

  • ISBN: 978-3-319-07060-5