Finance and Macroeconomic Volatility

Denizer, Cevdet ; Iyigun, Murat F. ; Owen, Ann L.

World Bank, Washington, DC

关键词: ACCOUNTING;    AGGREGATE OUTPUT;    AGGREGATE SUPPLY;    AGGREGATE SUPPLY CURVE;    ANNUAL GROWTH;   

DOI  :  10.1596/1813-9450-2487
RP-ID  :  WPS2487

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Countries with more developed financialsectors, experience fewer fluctuations in real per capitaoutput, consumption, and investment growth. But the mannerin which the financial sector develops matters. The relativeimportance of banks in the financial system is important inexplaining consumption, and investment volatility. Theproportion of credit provided to the private sector, bestexplains volatility of consumption, and output. The authorsgenerate their main results using fixed-effects estimateswith panel data from seventy countries for the years1956-98. Their general findings suggest that the riskmanagement, and information processing provided by banks,maybe especially important in reducing consumption, andinvestment volatility. The simple availability of credit tothe private sector, probably helps smooth consumption, and GDP.