Romania in a post-credit crunch world? A cautionary tale from Australia and America

Carmen Costea, Steve Keen

    Research output: Contribution to journalArticle

    Abstract

    We present data on debt accumulation in Australia and the United States, and tentative data on Romania, to pose the question of whether Romania might experience a credit crunch as a result of the US subprime financial crisis. We develop a model of a credit crunch in a pure credit economy with endogenous money creation to show how changes in bank lending practices and borrower repayment behaviour can bring about an economic decline.
    Original languageEnglish
    Pages (from-to)16-35
    Number of pages20
    JournalRomanian Journal of Economic Forecasting
    Volume10
    Issue number1
    Publication statusPublished - 2009

    Keywords

    • Australia
    • Romania
    • United States
    • credit
    • debt
    • financial crises
    • monetary policy

    Fingerprint

    Dive into the research topics of 'Romania in a post-credit crunch world? A cautionary tale from Australia and America'. Together they form a unique fingerprint.

    Cite this