Financial and Business Cycles: Shall We Dance?: An Application to Kazakhstan

August 23, 2024

Preview Citation

Format: Chicago

Gregorio Impavido. Financial and Business Cycles: Shall We Dance?: An Application to Kazakhstan, (USA: International Monetary Fund, 2024) accessed September 14, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper examines the role of financial cycle proxies in refining available estimates of the business cycle in Kazakhstan. It contributes to the existing literature by introducing a formal test for the stability of the mean of exogenous variables in the estimation set up, and by developing a self-contained statistical package to streamline the whole estimation process. The empirical strategy is designed to be parsimonious, aiming to avoid the pitfalls associated with overly complex models while achieving comparable results. Results have implications for the extent with which the authorities should manage the business and financial cycles, with which policies, for macroprudential policy calibration, and for the usefulness for policymaking of endsample estimates of the cycle.

Subject: Business cycles, Credit, Economic growth, Financial cycles, Financial sector policy and analysis, Money

Keywords: Business cycle, Business cycles, Credit, Financial cycle, Financial cycles, HP filter, Multivariate filter

Publication Details

Pages:

36
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 2024/182
Stock No:

WPIEA2024182
ISBN:

9798400288883
ISSN:

1018-5941

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers