Nexus Between Financial Cycle and Business Cycle in India

2020 ◽  
pp. 15-27
Author(s):  
Kundan Kumar ◽  
Zeeshan Nezami Ansari ◽  
Rajendra Narayan Paramanik
Keyword(s):  
Business Cycle ◽  
Financial Cycle

scholarly journals Does the Real Business Cycle Help Forecast the Financial Cycle?

2021 ◽  
Author(s):  
Fredj Jawadi ◽  
Hachmi Ben Ameur ◽  
Stephanie Bigou ◽  
Alexis Flageollet
Keyword(s):  
Business Cycle ◽  
Real Business Cycle ◽  
The Real ◽  
Financial Cycle

Dynamic connectedness among monetary policy cycle, financial cycle and business cycle in China

2021 ◽  
Vol 69 ◽  
pp. 640-652
Author(s):  
Xiao-Lin Li ◽  
Jing Yan ◽  
Xiaohui Wei
Keyword(s):  
Monetary Policy ◽  
Business Cycle ◽  
Policy Cycle ◽  
Financial Cycle

scholarly journals Business cycle and financial cycle spillovers in the G7 countries

2015 ◽  
Vol 58 ◽  
pp. 154-162 ◽  
Author(s):  
Nikolaos Antonakakis ◽  
Max Breitenlechner ◽  
Johann Scharler
Keyword(s):  
Business Cycle ◽  
G7 Countries ◽  
Financial Cycle

scholarly journals The Length of Financial Cycle and its Impact on Business Cycle in Poland

2020 ◽  
Vol XXIII (Issue 4) ◽  
pp. 1278-1290
Author(s):  
Malgorzata
Keyword(s):  
Business Cycle ◽  
Financial Cycle

scholarly journals Financial Soundness Indicator, Financial Cycle, Credit Cycle and Business Cycle－Evidence from Taiwan

2016 ◽  
Vol 8 (4) ◽  
pp. 166 ◽  
Author(s):  
Yuan Chang
Keyword(s):  
Business Cycle ◽  
Economic Activity ◽  
Financial Stability ◽  
Financial Institution ◽  
Balance Sheet ◽  
Bank Credit ◽  
Contraction Phase ◽  
Financial Cycle ◽  
Financial Soundness ◽  
Credit Cycle

<p>Business cycle is the repeated expansions (from trough to peak) and contractions (from peak to trough) of real economic activity. Credit cycle is the cyclical process of the bank credit, ranging from short/long-term, loan to enterprise and loan to individual. Financial cycle reflects ups and downs in asset prices and financial institution's balance sheet. This paper examines the linkage among cycles as well as their lead-lag relationship. Theoretically, credit cycle is one of reasons driving business cycle, and financial cycle is a fundamental cause of credit cycle. Based on Taiwan’s quarterly data, this paper firstly identifies cyclical behavior of indicators of real economic activity, bank credit and assets prices in recent decade by defining expansion phases and contraction phases of cyclical variables. Second, this paper calculates concordance index to examine the degree of synchronization among cycles. Third, while the soundness for assets and liabilities of financial institution may drive financial cycle, this paper employs IMF’s Financial Soundness Indicator (FSI) as predictor of expansion and contraction phase of cyclical variables. Specifically, the paper assesses the health of bank’s balance sheet variables by Probit estimation on linkage between FSIs and expansion/contraction phase of cycle. Based on empirical evidence, the knowledge about the extent of assets/liability condition of financial institution corresponding to the expansion and contraction phase of financial, credit and business cycle is enhanced. Authority concerning about financial stability should oversight the performance of FSIs and then engage in prompt corrective actions when the level and volatility of those indicators sharply.</p>

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