Research Catalog

Title

Quantifying the Effect of Financial Conditions on US Activity [electronic resource] / Stéphanie Guichard and David Turner

Author

Guichard, Stéphanie.

Publication

Paris : OECD Publishing, 2008.

Details

Additional Authors

Turner, David.

Description

20 p.; 21 x 29.7cm.

Summary

This paper constructs a broad measure of financial conditions for the United States which suggests that since the onset of the credit crisis there has been a marked tightening in financial conditions, despite a substantial easing of policy rates and a depreciation of the dollar. This measure of overall financial conditions includes interest rate spreads for riskier borrowers and a survey measure of the tightness of bank lending standards, which have been the main drivers behind the tightening in financial conditions. Indeed, recent data suggest that the trend deterioration in overall financial conditions has continued into the second half of 2008. The effect of the tightening in overall financial conditions already experienced may subtract 1¾ per cent from GDP over the next four to six quarters. Not only have financial conditions continued to worsen, but much of the impact on the real economy has yet to be felt.

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.635

Uniform Title

OECD Economics Department Working Papers, no.635.

Subject

Economics

LCCN

10.1787/236860073636

OCLC

oecd-lib-003971

Author

Guichard, Stéphanie.

Title

Quantifying the Effect of Financial Conditions on US Activity [electronic resource] / Stéphanie Guichard and David Turner

Imprint

Paris : OECD Publishing, 2008.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.635

OECD Economics Department Working Papers, 1815-1973 ; no.635.

Connect to:

http://dx.doi.org/10.1787/236860073636

Indexed Term

Economics

Added Author

Turner, David.

Other Standard Identifier

10.1787/236860073636 doi