Berger, A., and G. Udell, 2004, “The Institutional memory Hypothesis and the Procyclicality of Bank Lending Behavior,” Journal of Financial Intermediation, Vol. 13, pp. 458–495.
Caballero, R., and A. Krishnamurthy, 2001, “International and Domestic Collateral Constraints in a Model of Emerging Market Crises,” Journal of Monetary Economics, Vol. 48, pp. 513–548.
Demirguc-Kund, A., and E. Detragiache, 2002, “Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation,” Journal of Monetary Economics, Vol. 49, pp. 1373–1406.
Gourinchas, P.O., R. Valdes, and O. Landerretche, 2001, “Lending Booms: Latina America and the World,” Economia, Spring Issue, pp. 47–99.
Hilbers, P., I. Otker-Robe, C. Pazarbasioglu, and G. Johnsen, 2005, “Assessing and Managing Rapid Credit Growth and the Role of Supervisory and Prudential Policies,” IMF mimeo.
Kaminsky, G., and C. Reinhart, 1999, “The Twin Crises: The Causes of Banking and Balance-of-Payments Problems,” American Economic Review, Vol. 89, pp. 473–500.
Rajan, R., 1994, “Why Bank Credit Policies Fluctuate: A Theory and Some Evidence,” Quarterly Journal of Economics, Vol. 109, pp. 399–441.
Terrones, M. and E. Mendoza, 2004, “Are Credit Booms in Emerging Markets a Concern?,” World Economic Outlook, pp. 148–166 (Washington: International Monetary Fund).
Tornell, A., and F. Westermann, 2002, “Boom-Bust Cycles in Middle Income Countries: Facts and Explanation,” IMF Staff Papers, Vol. 49 Special Issue, pp. 111–153.
Prepared by Giovanni Dell’Ariccia.
Gourinchas et al. (2001) employs a Hodrick-Prescott (HP) filter. This paper uses a cubic trend to avoid problems related to the end-point bias associated with the HP methodology.