Exploring BIS credit-to-GDP gap critiques: the Swiss case

نویسندگان

چکیده

Abstract A growing body of literature has highlighted two important caveats to the credit-to-GDP gap as advocated by Bank for International Settlements (BIS). The first relates approach used normalise credit (i.e. dividing nominal GDP). In this regard, critics have argued that GDP movements, may or not be relevant, run risk affecting a normalised measure credit. second use Hodrick-Prescott (HP) filter estimate gap’s trend component. emphasised several measurement problems associated with using HP filter. paper, we assess relevance these critiques Switzerland. Our findings show despite its drawbacks, BIS is reliable excess in Alternatives do provide clear advantages, rather they are considerably more complex and come their own set pitfalls. For policymaking purposes, signal should complemented narratives based on broader metrics ensure an all-encompassing assessment made.

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ژورنال

عنوان ژورنال: Swiss Journal of Economics and Statistics

سال: 2021

ISSN: ['0303-9692', '1421-2110', '2673-2777', '2235-6282']

DOI: https://doi.org/10.1186/s41937-021-00073-1