There were hardly any banking crises between 1939 and 1971, so their later reemergence came as a surprise. Central bank supervisors responded practically by discovering and encouraging the adoption of current best practice in risk management by individual banks, without much theoretical input, whereas economists have mostly focused on models which abstract from default. But default is central t...

Recent emerging market crises have emphasized the fluctuating character of trade’s reaction after financial crises, in contradiction with the apparently simple theoretical impact of such events on trade, which is essentially described by the well-known J-curve mechanism.. We use a gravity-like equation to assess the impact of these events on bilateral sectoral trade and reveal the elements whic...

Recent studies have conjectured that there may be a link between financial liberalization and financial instability in emerging economies. Most of these studies, however, do not investigate whether emerging economies are becoming structurally more vulnerable to currency and banking crises. In this paper, we argue that emerging economies are systematically becoming more susceptible to both curre...

1 The Mexican crisis of 1994 and its unprecedented international spillover through global financial markets signaled the dawn of a new era in capital-markets crises that challenged, and defeated, both economists' theories and practitioners' policies. Around that time, there was heated debate as to whether this crisis differed from previous Mexican crises triggered by fiscal indiscipline and rea...

BACKGROUND Oculogyric crises are involuntary movements of the eyeballs and can occur due to different etiologies. PHENOMENOLOGY SHOWN This video abstract shows a man with oculogyric crises due to side effect of neuroleptics. EDUCATIONAL VALUE Oculogyric crises are easy to recognize if once seen.

Short-term collateralized debt, private money, is efficient if agents are willing to lend without producing costly information about the collateral backing the debt. When the economy relies on such informationally-insensitive debt, firms with low quality collateral can borrow, generating a credit boom and an increase in output. Financial fragility is endogenous; it builds up over time as inform...