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Credit and business cycles in Greece: Is there any relationship?

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  • Karfakis, Costas

Abstract

This paper examines the relationship between real output and real credit at business-cycle frequencies in Greece. The Granger causality tests indicate that real credit is important to understanding future movements in real output, given the trade deficit ratio. The impulse response analysis implies that the recovery of the Greek economy requires a positive credit shock which will stimulate real output.

Suggested Citation

  • Karfakis, Costas, 2013. "Credit and business cycles in Greece: Is there any relationship?," Economic Modelling, Elsevier, vol. 32(C), pages 23-29.
  • Handle: RePEc:eee:ecmode:v:32:y:2013:i:c:p:23-29
    DOI: 10.1016/j.econmod.2013.01.036
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    Cited by:

    1. repec:psc:journl:v:9:y:2017:i:4:p:323-357 is not listed on IDEAS
    2. Hyun, Junghwan, 2016. "Financial crises and the evolution of credit reallocation: Evidence from Korea," Economic Modelling, Elsevier, vol. 56(C), pages 25-34.
    3. Schleer, Frauke & Kappler, Marcus, 2014. "The Phillips Curve: (In)stability, the role of credit, and implications for potential output measurement," ZEW Discussion Papers 14-067, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. Magkonis, Georgios & Tsopanakis, Andreas, 2016. "The financial and fiscal stress interconnectedness: The case of G5 economies," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 62-69.
    5. Vouldis, Angelos, 2015. "Credit market disequilibrium in Greece (2003-2011) - a Bayesian approach," Working Paper Series 1805, European Central Bank.
    6. Mercè Sala-Rios & Teresa Torres-Solé & Mariona Farré-Perdiguer, 2016. "Credit and business cycles’ relationship: evidence from Spain," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 15(3), pages 149-171, December.
    7. Magkonis, Georgios & Tsopanakis, Andreas, 2014. "Exploring the effects of financial and fiscal vulnerabilities on G7 economies: Evidence from SVAR analysis," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 32(C), pages 343-367.

    More about this item

    Keywords

    Real output; Business cycles; Real credit; Granger causality test; VAR analysis;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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