Do Financial Crises Occur in Advanced Economies at Regular Intervals?
نویسندگان
چکیده
منابع مشابه
Financial Crises Occur When Financial Systems Become Illiquid
or insolvent. Such crises have recurred throughout the history of capitalism. A collapse in investor confidence, usually after a period of market euphoria, marks such crises—examples include the Dutch tulip mania crisis of 1637–38, the Indian cotton futures market crash of 1866, and the Great Depression of 1929. When foreign lenders are involved, cross-border payments problems arise as well. Th...
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The simultaneous determination of financial default and political crises is studied in an open economy model. Political crises accompany default in equilibrium because of an information transmission conflict between the government and the public. Multiple equilibria are possible: if foreign lenders are pessimistic about the country’s stability, they demand a high interest on the debt, exacerbat...
متن کاملAppendix to "Financial Crises and Political Crises"
PBE Type i: Neither default nor political crisis If V ≤ χL, the costs of default are always larger than the costs of servicing the debt even for the benevolent government. Then in equilibrium, the government proposes to service the debt, which is accepted by the representative agent. Hence the debt is repaid and political crisis is avoided. Neither the benevolent government nor the self interes...
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The paper discusses frameworks in which the financial sector is at the eye of the storm. In that context, policies that do not repair the damage in the financial sector are, by necessity, second‐best. Actually, aggregate demand policies – emphasized in textbook Keynesian models – may be inferior to heterodox policies that rely on credit targeting. Moreover, based on salient characteristics of m...
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The recent financial turmoils in Latin America and Europe have led to a concatenation of several events from currency, banking and sovereign debt crises. This paper proposes a multivariate dynamic probit model that encompasses the three types of crises ’currency, banking and sovereign debt’ and allows us to investigate the potential causality between all three crises. To achieve this objective,...
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ژورنال
عنوان ژورنال: International Journal of Economics and Finance
سال: 2013
ISSN: 1916-9728,1916-971X
DOI: 10.5539/ijef.v5n11p46