Figure 3
Panel (a): Developing versus Advanced Economies: The title at the top reads: L R A S-Leaning Barometer by Decade and Development. The vertical axis is labeled “Mean L L B” and ranges from negative 4 to 4 in increments of 2 units. The horizontal axis includes grouped categories “Developing slash Emerging” followed by decades 1990 to 2020 in increments of 10 years, and “Advanced” followed by decades 1990 to 2020 in increments of 10 years. A horizontal reference line marks zero. The data for the bars are as follows: For Developing slash Emerging: 1990: negative 2 2000: positive 2.7 2010: negative 4.1 2020: negative 2 For Advanced: 1990: positive 3.3 2000: positive 2.8 2010: negative 2.6 2020: negative 4.5 Panel (b): (b) Eastern and Central Europe versus Rest of World: The title at the top reads: L R A S-Leaning Barometer: E. Europe versus Rest. The vertical axis is labeled “Mean L L B” and ranges from negative 6 to 4 in increments of 2 units. The horizontal axis includes grouped categories “Rest of World” followed by decades 1990 to 2020 in increments of 10 years, and “Eastern and Central Europe” followed by decades 1990 to 2020 in increments of 10 years. A horizontal reference line marks zero. The data for the bars are as follows: For Rest of World: 1990: positive 3.5 2000: positive 3.2 2010: negative 3.6 2020: negative 3.1 For Eastern and Central Europe: 1990: negative 2.2 2000: positive 1 2010: negative 5.2 2020: negative 0.8 Note: All numerical data values are approximated.LRAS-leaning barometer across decades and regions. Notes: The LRAS-leaning barometer is defined as the ratio of the cumulative 3-year investment response to the cumulative 3-year inflation response following a credit impulse. A positive LLB indicates that credit expansions predominantly raise productive capacity (LRAS-oriented), whereas a negative LLB indicates that credit predominantly fuels demand or speculative pressures with limited supply expansion (inflation-oriented). Bars display decade averages of country-level LLBs. The dashed horizontal line marks a neutral balance between investment and inflation responses