@techreport{NBERw16836,
 title = "Procyclicality and Monetary Aggregates",
 author = "Hyun Song Shin and Kwanho Shin",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "16836",
 year = "2011",
 month = "February",
 URL = "http://www.nber.org/papers/w16836",
 abstract = {Financial intermediaries borrow in order to lend.  When credit is increasing rapidly, the traditional deposit funding (core liabilities) is supplemented with other funding (non-core liabilities).  We explore the hypothesis that monetary aggregates reflect the size of non-core and core liabilities and hence convey information on the stage of the financial cycle.  In emerging economies with open capital markets, non-core liabilities of the banking system take the form of short-term foreign exchange liabilities, increasing the vulnerability to the outbreak of “twin crises” where a liquidity crisis is compounded by a currency crisis.},
}