This paper analyzes transmission of the great recession from advanced to emerging economies. The widespread impact of the global financial crisis of 2008–09 has spurred researchers to examine how the associated recession was transmitted from advanced to emerging economies. Recent IMF studies have found that precrisis vulnerabilities such as large current account deficits, rapid credit growth, and high levels of short-term debt were strongly associated with the magnitude of spillovers. Trade, bank lending, and financial markets served as key transmission channels.

Abstract

This paper analyzes transmission of the great recession from advanced to emerging economies. The widespread impact of the global financial crisis of 2008–09 has spurred researchers to examine how the associated recession was transmitted from advanced to emerging economies. Recent IMF studies have found that precrisis vulnerabilities such as large current account deficits, rapid credit growth, and high levels of short-term debt were strongly associated with the magnitude of spillovers. Trade, bank lending, and financial markets served as key transmission channels.

Volume 58 Number 1

Foreword

Olivier Blanchard

Introduction

Pierre—Olivier Gourinchas

Sudden Financial Arrest

Ricardo J. Caballero

Do Global Banks Spread Global Imbalances? Asset-Backed Commercial Paper during the Financial Crisis of 2007—09

Viral V. Acharya and Philipp Schnabl

Household Leverage and the Recession of 2007—09

Atif Mian and Amir Sufi

Balance Sheet Adjustments during the 2008 Crisis

Zhiguo He, In Gu Khang, and Arvind Krishnamurthy

Debt Overhang and Recapitalization in Closed and Open Economies

Thomas Philippon

Macro Risk Premium and Intermediary Balance Sheet Quantities

Tobias Adrian, Emanuel Moench, and Hyun Song Shin

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IMF Research Bulletin, September 2010
Author: International Monetary Fund. Research Dept.