Financial Crises and Monetary Expansion

37 Pages Posted: 25 Apr 2013

See all articles by Ola Honningdal Grytten

Ola Honningdal Grytten

Institutt for samfunnsøkonomi / Department of Economics Norges Handelshøyskole / Norwegian School of Economics

Date Written: December 31, 2011

Abstract

On the basis of data from the Historical Monetary Statistics-project by Norges Bank, the present paper serves a threefold purpose. In the first place it gives an overview of financial crisis in Norway from her independence from Denmark in 1814 till present times. Secondly, historical business cycles are mapped and we conclude that the major financial crises were mirrored in significant slumps in the real economy. Thirdly, the paper investigates credit and monetary developments, and concludes that the major financial crises in Norway typically took place after substantial money and credit expansion causing overheating and bubbles to the economy.

Keywords: Business cycles, Supply of money and credit, Financial crises

JEL Classification: E32, E51, G01, N13, N14

Suggested Citation

Grytten, Ola Honningdal, Financial Crises and Monetary Expansion (December 31, 2011). Norges Bank Working Paper 2011|21. Available at SSRN: https://ssrn.com/abstract=2255946 or http://dx.doi.org/10.2139/ssrn.2255946

Ola Honningdal Grytten (Contact Author)

Institutt for samfunnsøkonomi / Department of Economics Norges Handelshøyskole / Norwegian School of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway

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