Bank-based economies struggle more during recoveries: IMF paper
An International Monetary Fund paper published on Monday finds evidence that market-based economies experience significantly and durably stronger rebounds than the bank-based ones following a recession.
The paper's authors, Julien Allard and Rodolphe Blavy, use a sample of 84 economic crises in 17 advanced economies between 1960 and 2007 to examine whether an economy that is bank-based or market-based matters for its ability to recover from economic crises.
The results suggest that, among
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