Emerging European countries also experienced credit booms during the pre-crisis period but have largely avoided severe banking crises. The World Bank has commissioned a number of studies to look at financial regulation and macroeconomic policy in these countries, with the first wave of papers now released:
Macroprudential regulation of credit booms and busts : the experience of the National Bank of the Republic of Macedonia
Credit growth and financial stability in the Czech Republic
Macroprudential regulation of credit booms and busts — the case of Croatia
Financial-stability challenges in European emerging-market countries
Banking flows and financial crisis — financial interconnectedness and basel III effects
2 replies on “Managing Credit Booms”
Have you ever listened to George Soros’s theory on saving the centre and letting the periphery cut loose? There would seem to be something in what he says.
The crises in the emerging markets, caused the flow of capital to the centre. When the centre experienced a crisis, there was a massive attempt to save the centre. Which meant that the periphery got hammered for a second time around. BOH.
You may appreciate this anylasis , or maybe not.