Credit-fuelled construction booms lead to busts – IMF research

housing5

Credit booms are more likely to end in financial crisis if they have caused rapid construction growth, new research from the International Monetary Fund finds.

Researcher Giovanni Dell’Ariccia and his co-authors use data from a large sample of advanced and emerging market economies from 1970 to 2014. They examine how credit booms and busts affect certain industries. They also investigate the sectoral composition of output and employment during credit booms.

The authors find that credit booms

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.