Credit, Financial Stability, and the Macroeconomy

Posted: 7 Aug 2015

See all articles by Alan M. Taylor

Alan M. Taylor

University of California, Davis - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

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Date Written: August 2015

Abstract

Since the 2008 global financial crisis, and after decades of relative neglect, the importance of the financial system and its episodic crises as drivers of macroeconomic outcomes has attracted fresh scrutiny from academics, policy makers, and practitioners. Theoretical advances are following a lead set by a fast-growing empirical literature. Recent long-run historical work has uncovered a range of important stylized facts concerning financial instability and the role of credit in advanced economies, and this article provides an overview of the key findings.

Suggested Citation

Taylor, Alan M., Credit, Financial Stability, and the Macroeconomy (August 2015). Annual Review of Economics, Vol. 7, pp. 309-339, 2015, Available at SSRN: https://ssrn.com/abstract=2640072 or http://dx.doi.org/10.1146/annurev-economics-080614-115437

Alan M. Taylor (Contact Author)

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