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Global Liquidity and Household Credit

Author

Listed:
  • Berrak Bahadir

    (Department of Economics, Florida International University)

  • Neven Valev

    (Georgia State University)

Abstract

We show that global liquidity contributes to household credit growth across countries. The effect is particularly strong in countries that are more closely integrated with the world economy as well as in those with a greater level of financial development and more open capital markets. We also find tentative evidence that countries with a greater presence of foreign banks and those with more concentrated banking systems experience a closer link between global liquidity and household credit.

Suggested Citation

  • Berrak Bahadir & Neven Valev, 2021. "Global Liquidity and Household Credit," Working Papers 2106, Florida International University, Department of Economics.
    • Handle: RePEc:fiu:wpaper:2106
    as

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    File URL: https://economics.fiu.edu/research/pdfs/2021_working_papers/2106.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    consumer credit; household credit; global liquidity;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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