Working Paper: CEPR ID: DP7884
Authors: Domenico Giannone; Michele Lenza; Lucrezia Reichlin
Abstract: In this study we find that the set of policies that favor liberalization in credit markets (regulatory quality) are negatively correlated with countries? resilience to the recent recession as measured by output growth in 2008 and 2009.
Keywords: financial crisis; market freedom; recession
JEL Codes: E02; E65
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| credit market liberalization (F65) | countries' resilience to the global recession (F69) |
| regulatory quality (L15) | countries' resilience to the global recession (F69) |
| income per capita (D31) | countries' resilience to the global recession (F69) |
| regulatory quality (L15) | output growth during the recession (O40) |
| credit market regulatory quality (G18) | output growth during the recession (O40) |
| financial market development (O16) | output volatility (E23) |
| financial market liberalization (F30) | macroeconomic vulnerability (F41) |