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The Great Leveraging

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  • Taylor, Alan M.

Abstract

What can history can tell us about the relationship between the banking system, financial crises, the global economy, and economic performance? Evidence shows that in the advanced economies we live in a world that is more financialized than ever before as measured by importance of credit in the economy. I term this long-run evolution ?The Great Leveraging? and present a ten--point examination of its main contours and implications.

Suggested Citation

  • Taylor, Alan M., 2012. "The Great Leveraging," CEPR Discussion Papers 9082, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:9082
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    More about this item

    Keywords

    Banking; Booms; Credit; Crises; Financial development; Fiscal policy; Global imbalances; Great recession; Recessions;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N2 - Economic History - - Financial Markets and Institutions

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