The two-way relationship between credit and stock prices in periods of bubbles and non-bubbles

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2017-07-17

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en

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The credit crisis has one again demonstrated that credit fuelled price bubbles cause huge risks to the economy. This study analyses the relationship between credit and stock prices in a whole sample and bubbles, in panel and country individual analyses. The results indicate a relationship from credit to stock prices, with a positive feedback loop in credit bubbles. However, the relationship, with and without bubbles, can differ between countries.

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Faculteit der Managementwetenschappen

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