Some Empirics on Asset Prices, Leveraging and Credit Crisis

Abstract

In recent times, the macro economy of many countries has been driven by boombust cycles. This concerns not only the real side of the economy, but also the financial side, actually both are strongly interlinked. One can observe asset price booms, credit expansion and high leveraging accompanying output expansion, the reverse development is then triggered by some events with asset price fall, credit contraction, output loss and de-levering.