Fiscal and Financial Crises

Bordo, Michael D.; Meissner, Christopher M.

doi:10.1016/bs.hesmac.2016.04.001

Cited by 55 publications

(61 citation statements)

References 147 publications

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“…Hence, even when controlling for a wide range of other macro-financial factors, changes in the top 1% income share still have predictive power for crises. 26,27 23 See Bordo and Meissner (2016) for a discussion on the dating of financial crises. 24 In particular, I use two separate definitions.…”

Section: Robustnessmentioning

confidence: 99%

Historical Patterns of Inequality and Productivity around Financial Crises

Paul¹

2020

ERWP

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To understand the determinants of financial crises, previous research focused on developments closely related to financial markets. In contrast, this paper considers changes originating in the real economy as drivers of financial instability. To this end, I assemble a novel data set of long-run measures of income inequality, productivity, and other macrofinancial indicators for advanced economies. I find that rising top income inequality and low productivity growth are robust predictors of crises, and their slowmoving trend components largely explain these relations. Moreover, recessions that are preceded by such developments are deeper than recessions without such ex-ante trends.

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Section: Robustnessmentioning

confidence: 99%

Historical Patterns of Inequality and Productivity around Financial Crises

Paul¹

2020

ERWP

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“…4 I use the most widely cited data set on banking crises; however, not all authors agree with existing metrics of financial crises dating. See Bordo and Meissner (2016) for a review. 5 Abiad et al (2010) assert that the prudential regulation of banks and supervision of the banking sector dimension differs from the others in terms scoring.…”

Section: Discussionmentioning

confidence: 99%

Financial liberalization, exchange‐rate regime, and banking crisis likelihood

Richey

2018

Int. J Fin Econ

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This paper provides empirical evidence of the impact that financial liberalization plays, within various exchange rate regimes, on the likelihood of systemic banking crisis. Using a sample of 50 banking crisis episodes over the period of 1985–2005, I investigate the impact of financial liberalization and exchange‐rate regime on the likelihood of systemic banking crisis. When interacted with an overall financial liberalization measure, exchange‐rate regime was significant and positive under a flexible regime. Other empirical results show that when interacted with financial liberalization dimensions, exchange‐rate regime variables produced significant results under intermediate and flexible exchange‐rate regimes.

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“…Our interpretation on data from Bordo and Landon Lane (2013), who build on the earlier work of Bordo et al (2001) and Laeven and Valencia (2012). There is disagreement about the incidence of financial crises (see Bordo and Meissner, 2016). The latest addition is due to Romer and Romer (2017).…”

Section: Notesmentioning

confidence: 99%

A Survey of the International Evidence and Lessons Learned About Unconventional Monetary Policies: Is a ‘New Normal’ in Our Future?

Lombardi¹,

Siklos

Amand

2018

Journal of Economic Surveys

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This study examines the effectiveness of unconventional monetary policies (UMP). It considers whether these policies have been successful and where their effects remain uncertain. We survey both the domestic financial market and macro‐economic effects of UMP in the economies where these policies were introduced and their international spillover effects. The paper considers the impact of a wide range of UMP rather than the effects of specific policy instruments. We also provide a retrospective on the important case of Japan beginning in the late1990s and ask whether the Eurozone's experience with UMP is substantively different given its structure of policymaking. Finally, we ask: if the ‘old normal’ is not in our future, should the ‘new normal’ in monetary policy routinely include what we now refer to as UMP? We conclude that UMP can prevent economic collapse but are not designed to promote stronger long‐term economic growth. Apart from new communication strategies, the use of UMP under normal circumstances does not appear to be a sound monetary policy strategy. Failure to learn this lesson might also enable future policy makers to ask or expect too much from their central banks.

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Fiscal and Financial Crises

Cited by 55 publications

References 147 publications

Historical Patterns of Inequality and Productivity around Financial Crises

Historical Patterns of Inequality and Productivity around Financial Crises

Financial liberalization, exchange‐rate regime, and banking crisis likelihood

A Survey of the International Evidence and Lessons Learned About Unconventional Monetary Policies: Is a ‘New Normal’ in Our Future?

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