On the severity of economic downturns: Lessons from cross-country evidence

Determinants of the real impact of banking crises: A review and new evidence

“…The horizontal distance between A and B is the duration of the crisis (Duration 2 in Table 1), whereas the vertical distance denotes the depth of a crisis (equal to the Peak to trough measure in Table 1). These measures can be thought of as a triangle, with the horizontal distance as a base and the vertical distance as amplitude (Agnello andNerlich, 2012 andHarding andPagan, 2002). The Crisis Severity 2 measure corresponds to the surface area of the triangle, expressed as a percentage of the pre-crisis peak GDP.…”

“…9 All other variables in our analysis -except (by definition) currency crisis, the change in public expenditures and trade growth -have been lagged, which reduces endogeneity (similar to e.g. Agnello andNerlich, 2012 andBerkmen et al 2012). 10 This variable takes on the value of 0 when a presidential regime is in place, the value 1 if a country has an assembly-selected president and a value of 2 when a country has a parliamentary regime.…”

How do central banks react to wealth composition and asset prices?

“…The severity of the 2008-2009 …nancial turmoil has revealed the strength of the linkages between the …nancial markets and the banking system, the housing sector, the credit market, and the monetary framework. Moreover, its dramatic economic damages and potentially long-lasting e¤ects emerged as key elements for evaluating the impact that external imbalances, oil prices, private investment, stock and credit markets or even duration dependence has on the likelihood of "boombust" episodes and expansion and contraction ending (Agnello and Nerlich, 2010;Castro, 2010a).…”

Determinants of the Real Impact of Banking Crises: A Review and New Evidence

“…9 All other variables in our analysis -except (by definition) currency crisis, the change in public expenditures and trade growth -have been lagged, which reduces endogeneity (similar to e.g. Agnello andNerlich, 2012 andBerkmen et al 2012). 10 This variable takes on the value of 0 when a presidential regime is in place, the value 1 if a country has an assembly-selected president and a value of 2 when a country has a parliamentary regime.…”