This paper proposes a methodology for measuring credit booms and uses it to identify credit
booms in emerging and industrial economies over the past four decades. In addition, we use
event study methods to identify the key empirical regularities of credit booms in
macroeconomic aggregates and micro-level data. Macro data show a systematic
relationship between credit booms and economic expansions, rising asset prices, real
appreciations, widening external deficits and managed exchange rates. Micro data show a …

We study the characteristics of credit booms in emerging and industrial economies. Macro
data show a systematic relationship between credit booms and economic expansions, rising
asset prices, real appreciations and widening external deficits. Micro data show a strong
association between credit booms and leverage ratios, firm values, and banking fragility. We
also find that credit booms are larger in emerging economies, particularly in the
nontradables sector; most emerging markets crises are associated with credit booms; and …