Aizenman, Joshua. <br/><br/>
Financial Sector Ups and Downs and the Real Sector:  Up by the stairs, down by the parachute / 
Joshua Aizenman, Brian Pinto, Vladyslav Sushko. 
 - Cambridge, Mass.  National Bureau of Economic Research  2011. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w17530 .
 - Working Paper Series (National Bureau of Economic Research)  no. w17530. .
<br/><br/> October 2011. 
<br/><br/> We examine how financial expansion and contraction cycles affect the broader economy through their impact on real economic sectors in a panel of countries over 1960-2005. Periods of accelerated growth of the financial sector are more likely to be followed by abrupt financial contractions than are periods of slower financial sector growth. Sharp fluctuations in the financial sector have strongly asymmetric effects, with the majority of real sectors adversely affected by contractions, but not helped by expansions. The adverse effects of financial contractions are transmitted almost exclusively through the financial openness channel, with precautionary foreign exchange reserve holdings serving as a key buffer. 
<br/><br/>
<br/><br/><br/>System requirements: Adobe [Acrobat] Reader required for PDF files. <br/>Mode of access: World Wide Web.