- Additional Authors
- Description
- 31 p.; 21 x 29.7cm.
- Summary
- This paper examines the characteristics of downturns and subsequent recoveries following past banking crises in OECD countries as well as evidence of any effects on potential output growth. It is differentiated from previous analyses because it makes use of OECD measures of the output gap and potential output. Downturns following banking crises are found to be more protracted with larger output losses and disproportionate falls in housing and business investment. The recovery is typically more muted with exports providing a disproportionately large positive contribution. Evidence regarding possible effects on potential growth of a banking crisis is mixed. The banking crisis in Japan was followed by a deterioration in potential growth partly due to a worsening in productivity performance which may be related to the protracted nature of the banking problems and the resulting misallocation of capital. Following the Nordic banking crises, which were resolved more quickly, there was no deterioration in productivity performance, although there was a temporary deterioration in potential growth which is mostly explained by an increase in the structural unemployment rate, which in turn may reflect the interaction of an exceptionally severe downturn with structural labour market rigidities.
- Series Statement
- OECD Economics Department Working Papers, 1815-1973 ; no.683
- Uniform Title
- OECD Economics Department Working Papers, no.683.
- Subject
- Economics
- LCCN
- 10.1787/226123651438
- OCLC
- oecd-lib-003086
- Author
Haugh, David.
- Title
The Macroeconomic Consequences of Banking Crises in OECD Countries [electronic resource] / David Haugh, Patrice Ollivaud and David Turner
- Imprint
Paris : OECD Publishing, 2009.
- Series
OECD Economics Department Working Papers, 1815-1973 ; no.683
OECD Economics Department Working Papers, 1815-1973 ; no.683.
- Connect to:
- Indexed Term
Economics
- Added Author
Ollivaud, Patrice.
Turner, David.
- Other Standard Identifier
10.1787/226123651438 doi