Title: AN OVERINVESTMENT CYCLE IN CENTRAL AND EASTERN EUROPE?
Abstract: MetroeconomicaVolume 61, Issue 4 p. 711-734 AN OVERINVESTMENT CYCLE IN CENTRAL AND EASTERN EUROPE? Andreas Hoffmann, Corresponding Author Andreas Hoffmann University of Leipzig I thank Gunther Schnabl (University of Leipzig), Mario Rizzo (New York University), Heinz Kurz (University of Graz) and Martti Randveer (Bank of Estonia) for helpful comments. Further I thank the participants of the ‘Colloquium on Market Institutions and Economic Processes’ (NYU), the Bank of Estonia Research Seminar and Leipzig University PhD Seminar for discussing my paper. I also thank two anonymous referees for very useful suggestions. The usual disclaimer applies.Andreas HoffmannUniversity of LeipzigInstitute for Economic PolicyGrimmaische Straße 12D-04109 LeipzigGermanyE-mail: [email protected] for more papers by this author Andreas Hoffmann, Corresponding Author Andreas Hoffmann University of Leipzig I thank Gunther Schnabl (University of Leipzig), Mario Rizzo (New York University), Heinz Kurz (University of Graz) and Martti Randveer (Bank of Estonia) for helpful comments. Further I thank the participants of the ‘Colloquium on Market Institutions and Economic Processes’ (NYU), the Bank of Estonia Research Seminar and Leipzig University PhD Seminar for discussing my paper. I also thank two anonymous referees for very useful suggestions. The usual disclaimer applies.Andreas HoffmannUniversity of LeipzigInstitute for Economic PolicyGrimmaische Straße 12D-04109 LeipzigGermanyE-mail: [email protected] for more papers by this author First published: 28 June 2010 https://doi.org/10.1111/j.1467-999X.2010.04103.xCitations: 39 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat ABSTRACT Prior to the Asian crisis, easy liquidity conditions contributed to credit expansion and overinvestment in the East Asian economies until they were hit by a deep recession. Similarly to the developments in the tiger economies in the 1990s, Central and Eastern European (CEE) grew rapidly from 2001 to 2007, due to foreign capital inflows. But the current global financial turmoil and economic downswing pulled the CEE economies into the maelstrom of the crisis. With the Asian experience in mind, the aim of this paper is to analyze whether overinvestment due to easy liquidity conditions possibly emerged and contributed to the crisis in CEE. Citing Literature Volume61, Issue4November 2010Pages 711-734 RelatedInformation