The phenomenon of creditless recoveries has been documented mainly in Emerging Market and low-income economies but seems to also play a role in industrial countries. Empirical evidence suggests that creditless recoveries are more likely when the preceding recession was deep and when the recession coincided with a banking crisis.
Several other factors also play a role: the openness of the economy to financial flows, the degree of export dependence, the degree of external adjustment during the recession and the stance and mix of fiscal and monetary policies. BIS central bankers’ speeches  1  Several explanations of this phenomenon have been proposed in the literature.