Colombian working paper examines credit cycles in EMs
Paper aims to ‘shed some light’ on interdependence of credit and GDP cycles
Emerging markets tend to have credit cycles "of shorter duration" but "higher amplitude" than developed economies, according to a working paper published yesterday by the Central Bank of Colombia, which aims to "shed some light on the interdependence of credit and GDP cycles".
In Credit and business cycles: an empirical analysis in the frequency domain, Juan Sebastián Amador, Celina Gaitán, José Eduardo Gómez, Mauricio Villamizar and Héctor Manuel Zárate argue that monetary authorities in the
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