Search results for "Crises"

German Bank Lending During Emerging Market Crises: A Bank Level Analysis

2007

This paper studies German bank lending during the Asian and Russian crises, using a bank level data set, which has been compiled from credit data at the Deutsche Bundesbank. Our aim is to gain more insight into the pattern of German bank lending during financial crises in emerging markets. We find that German banks reacted to the Asian crisis mainly by reallocating their portfolios among emerging markets. This behaviour is consistent with active portfolio management and does not necessarily indicate a spontaneous reaction to the Asian crisis. By contrast, the banks' behaviour during the Russian crisis is characterised by a general withdrawal from emerging markets. The use of micro data allo…

Do debt crises boost financial reforms?

2014

"Published online: 15 Aug. 2014"

Quantum macroeconomics: A tribute to Bernard Schmitt

2016

Bernard Schmitt, the founder of quantum macroeconomics, died on 26 March 2014. His legacy concerns the discovery of the logical laws of monetary macroeconomics and extends to the explanation of the origin and nature of economic and financial crises. Starting from a novel conception of bank money, he was able to show that economics is founded on true macroeconomic laws, which take the form of logical identities. This paper is a brief and necessarily incomplete introduction to the main themes of Schmitt's macroeconomic analysis. It ranges from the distinction between money and income that lies at the hearth of his theory of the circuit, to the investigation of inflation and unemployment as pa…

How Does Investor Sentiment Affect StockMarket Crises? Evidence from Panel Data

2011

Down and out in Italian towns: Measuring the impact of economic downturns on crime

2016

The paper investigates the effect of local economic conditions on crime. The study focuses on Italy’s local labor markets and analyzes the response of crime to the severe slump of 2007-2011. It shows that the downturn led to a significant increase in economic-related offenses that do not require particular criminal skills or tools (namely, thefts).

The effect of financial crises on potential output: New empirical evidence from OECD countries

2012

Abstract The aim of this paper is to assess the impact of financial crises on potential output. For this purpose a univariate autoregressive growth equation is estimated on an unbalanced panel of OECD countries over the period 1960–2008. Our results suggest that the occurrence of a financial crisis negatively and permanently affects potential output. In particular, financial crises are estimated to lower potential output by around 1.5–2.4% on average, with most of the impact coming from the effect on capital. The magnitude of the effect increases with the severity of the crisis. These results are robust to the use of an alternative measure of potential output, changes in the methodology and…

An anatomy of financial crises in Norway, 1830-2010

2014

Author's version of an article in the journal: Financial History Review. Also available from the publisher at: http://dx.doi.org/10.1017/S0968565013000279 On the basis of a novel dataset, the article investigates the anatomy of financial crises in Norway from 1830 to 2010. First, nine significant crises are identified. Second, the article examines spillover effects on the real economy. We find a clear but not symmetric relationship. Third, the article investigates key patterns in credit and money volumes. Major financial crises typically occurred after substantial money and credit expansion, causing financial instability.

Interbank lending and the spread of bank failures: A network model of systemic risk

2012

We model a stylized banking system where banks are characterized by the amount of capital, cash reserves and their exposure to the interbank loan market as borrowers as well as lenders. A network of interbank lending is established that is used as a transmission mechanism for the failure of banks through the system. We trigger a potential banking crisis by exogenously failing a bank and investigate the spread of this failure within the banking system. We find the obvious result that the size of the bank initially failing is the dominant factor whether contagion occurs, but for the extent of its spread the characteristics of the network of interbank loans are most important. These results ha…

Resilience and Convergence: Short vs.Long-Run Regional Effects of Economic Crises and Macroeconomic Policies

2020

Before the outbreak of the Great Recession, considerable attention was devoted to what makes a region successful, and why some regions grow faster than others, but researchers often overlooked how regions react to shocks and why this happens in a heterogeneous way. Furthermore, the classic literature on regional inequalities has mainly focused on the longterm relationship between economic growth and regional disparities and on the role of labor mobility, sometimes also as a mechanism of adjustment to labor demand idiosyncratic shocks. This literature trend has reversed since 2008, when investigation of the heterogeneous impact of shocks across areas became prominent in regional studies beca…

Sedimentology and biostratigraphy of a peritidal succession across the Triassic/Jurassic boundary: Monte Sparagio, north western Sicily

2016

A 490 m thick section of shallowing upward peritidal cycles spanning the Triassic-Jurassic boundary is exposed along the northern slope of Mount Sparagio in the San Vito Lo Capo Peninsula (Western Sicily). A detailed microfacies analysis allowed defining the aspects of cyclic sedimentation of this section and especially the stratigraphic occurrence patterns of benthic foraminifera and algae across the T/J boundary. The lower part of cycles commonly shows medium to low energy subtidal facies, typical of the inner lagoon of the carbonate platform. Subtidal facies such as coral bafflestone in some cycles suggest more open lagoonal conditions (patch reefs), while some higher energy layers such …