| Title |
Application of the integrated accounts framework for empirical investigation of the economic and financial cycle in Lithuania / |
| Authors |
Ramanauskas, Tomas ; Matkėnaitė, Skirmantė ; Rutkauskas, Virgilijus |
| Full Text |
|
| Is Part of |
Pinigų studijos.. Lietuvos bankas. 2016, 1, p. 61-79.. ISSN 1392-2637. eISSN 1648-8970 |
| Keywords [eng] |
financial cycle ; economic cycle ; credit ; macroeconomic and financial linkages |
| Abstract [eng] |
In this paper we take the integrated accounts perspective to analyse the case of the recent economic and financial cycle in Lithuania. This cycle was marked by the sectoral balance sheet expansion during the boom years followed by a balance sheet recession associated with economically very painful credit and monetary contraction. The cyclical developments were strongly associated with exuberant bank lending during the boom years, followed by a sudden reversal of lending conditions and the subsequent repatriation of debt financing by foreign banks. From the integrated accounts perspective, one of the crucial factors stabilising the economy after the crisis was rapid accumulation of public debt, which effectively offset deleveraging of the private sector. The government had to resort mainly to costly foreign financing, though in principle, under certain conditions, domestic financing could have been achieved. |
| Published |
Lietuvos bankas |
| Type |
Journal article |
| Language |
English |
| Publication date |
2016 |
