ITALY AFTER THE CRISIS: A CASE OF RECOVERYLESS CREDIT GROWTH

  • Antonio FORTE Centro Europa Ricerche, Italy

Abstract

In this study I compare the credit condition with the economic growth in Italy from January 2007 onward. Starting from the literature on the creditless recovery, I highlight the specific features of the Italian situation in which, notwithstanding the prolonged and deep economic crisis, the credit has persistently continued to grow. A comparison with the German case confirms the peculiar characteristics of the Italian condition. An econometric study supports this idea and, in order to depict this Italian economic situation, I propose a new expression: the recovery-less credit growth.

References

[1] Abiad, A., Dell’Ariccia, G., and Li, B. 2011. Creditless recoveries, CEPR Discussion Paper Series No. 8301.
[2] Bernanke, B.S., and Lown, C.S. 1991. The Credit Crunch, Brooking Papers on Economic Activity, Economic Studies Program, the Brookings Institution, 22(2): 205-248.
[3] Biggs, M., Mayer, T., and Pick, A., 2009. Credit and economic recovery, DNB Working Paper No. 218.
[4] Calvo, G., Izquierdo, A., and Talvi, E. 2006, Phoenix miracles in emerging markets: recovery without credit from systemic financial crises, BIS Working Paper No. 221.
[5] Calvo, G., and Loo-Kung, R. 2010. US Recovery: A New Phoenix Miracle? Inter-American Development Bank, Discussion Paper No. 106.
[6] Coricelli F., Roland, I., 2011. How do credit conditions shape economic recoveries?, CEPR Discussion Paper Series No. 8325.
[7] Claessens, S., Kose, A., and Terrones, M.E. 2008. What happens during the recessions, crunches and busts? IMF Working Paper No. 274.
[8] Dell’Ariccia, G, Detragiache, E and Rajan, R 2007. The real effect of banking crises. Journal of Financial Intermediation, 17: 89-112.
[9] Dell’Ariccia, G., and Garibaldi, P. 2005. Gross Credit Flows, Reviews of Economic Studies, 72(3): 665-85.
[10] Demirgüç-Kunt, A., Detragiache, E., and Gupta, P. 2006. Inside the crisis: An empirical analysis of banking systems in distress, Journal of International Money and Finance, 25(5): 702-718.
[11] Draghi, M. 2011. The Governor’s Concluding Remarks, Banca d’Italia, 31 May 2011.
[12] Holmstrom, B., and Tirolle, J., 1997. Financial Intermediation, Loanable Funds, and the Real Sector, The Quarterly Journal of Economics, 112(3): 663-691.
[13] Kannan, P. 2010. Credit Conditions and Recoveries from Recessions Associated with Financial Crises, IMF Working Paper No. 83.
[14] Kroszner, R., Laeven, L., and Klingebiel, D. 2007. Banking Crises, Financial Dependence, and Growth, Journal of Financial Economics, 84: 187-228.
[15] Rajan, R.G., and Zingales, L. 1998. Financial Dependence and Growth, American Economic Review, 88(3): 559-586.
Published
2011-12-31
How to Cite
FORTE, Antonio. ITALY AFTER THE CRISIS: A CASE OF RECOVERYLESS CREDIT GROWTH. Theoretical and Practical Research in Economic Fields, [S.l.], v. 2, n. 2, p. 132-140, dec. 2011. ISSN 2068-7710. Available at: <https://www.journals.aserspublishing.eu/tpref/article/view/1099>. Date accessed: 31 oct. 2024.