The great (De)leveraging in the GIIPS countries. Domestic credit and net foreign liabilities 1998–2013

摘要: This paper considers the relationship between domestic credit and foreign capital flows in GIIPS countries before after outbreak of global financial crisis. Cointegration analyses on pre-crisis sample reveal that net liabilities are cointegrated for Greece, Italy, Portugal Spain, but not Ireland. For first four long-run coefficient is all cases around one, suggesting a one-to-one leveraging inflows. Estimation VECMs data from period shows adjustment to deviations takes place through changes Greece while bidirectional Spain. These results suggest “push” inflows was an important factor leveraging. The deleveraging crisis largely unrelated developments