Costs of banking system instability: Some empirical evidence

Hoggarth, Glenn; Reis, Ricardo; Saporta, Victoria

doi:10.1016/s0378-4266(01)00268-0

Cited by 325 publications

(49 citation statements)

References 13 publications

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“…Similar evidence is provided by Cecchetti et al (2009); looking at 40 crises since 1980, their results show sharp and persistent contractions in output. Hoggarth et al (2002) suggest that output loss is about 15-20% of annual GDP, on average. More recently, Jordá et al, (2013) and Reinhart and Rogoff (2009a;2009b and, using a sample that spans centuries and several countries, show that banking crises have a long-lasting effect on both real economic activity and asset prices.…”

Section: The Costs Of Banking Crisesmentioning

confidence: 99%

The Cost of Banking Crises: New Evidence from Life Satisfaction Data

Montagnoli

Moro

2018

Kyklos

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Summary It is known that banking crises produce large economic costs. Yet might their consequences be even more far‐reaching? We investigate an issue as yet largely unexplored and provide some of the first evidence that banking crises also lead to major, widespread, and lasting psychological losses. We estimate the costs of banking crises with individual life satisfaction; we show that these extend beyond GDP declines and other macroeconomic and financial leakages. For the 2007‐8 financial crisis, we find some evidence that the losses are larger for those countries that had previously experienced a credit boom.

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Section: The Costs Of Banking Crisesmentioning

confidence: 99%

The Cost of Banking Crises: New Evidence from Life Satisfaction Data

Montagnoli

Moro

2018

Kyklos

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“…Although the second is more difficult to judge given the rarity of financial crises in developed countries in recent years, the length and depth of the Japanese financial crisis of the 1990s suggests that such intuition is plausible. Moreover, in terms of output losses, Hoggarth et al (2002) find that crises in developed countries do indeed tend to be more costly than those in emerging market economies.…”

Section: Resultsmentioning

confidence: 96%

Financial Innovation, Macroeconomic Stability and Systemic Crises

et al. 2008

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“…Crises usually were triggered (if not fundamentally caused) by sudden halts in international credit, such as during the Latin American debt crisis of the early 1980s. A decade later, the Mexican Tequila Crisis of 1994-95 sparked an enormous banking crash in Venezuela, ultimately costing 20 percent of GDP in government bailouts and rehabilitation (Hoggarth et al 2002). Nor was liberal (today "neoliberal") free trade ever very popular with the elites who dominated politics and policymaking, whether commodity exporters, who longed for stabilization of volatile international commodity prices, or nascent industrialists, who sought tariff protection (Karl 1997).…”

Section: Venezuela's Bolivarian Hope: Popular Control Of a Morally Sumentioning

confidence: 99%

Equality and Regional Finance in the Americas

Armijo¹

2013

Lat. Am. polit. soc.

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This article explores competing definitions of equality embedded in contending visions for regional finance in the Americas. The U.S. free market-oriented project envisions extension of a NAFTA-like regulatory framework hemispherewide, promising Latin Americans better financial services, credit, and investment in exchange for strong financial property protections and (implicitly) dramatically reduced financial policy autonomy for their governments. Venezuela's vision of "Bolivarian" finance, exported to the Caribbean and the upper Andes, promotes assertive state management of both foreign and domestic investors, populist redistribution, and increasing reliance on nonmarket financial transactions. Brazil's regional financial project would unite South America through continentwide physical infrastructure and capitalist financial markets while retaining a role for public sector banks responsive to central government priorities. Brazil's approach shares with Venezuela's an emphasis on governments' need for financial policy authority and with the U.S. approach a concern for regulatory predictability and financial deepening. E quality is not typically a term associated with competing designs for financial architecture. Yet contrasting understandings of what is needed to improve the set of rules governing the safeguarding of savings and provision of credit almost always involve implicit or explicit conceptualizations of equity and justice. This article investigates the underlying views on how to achieve greater equality found in three competing regional financial projects in the Americas, associated respectively with the United States, Venezuela, and Brazil. It traces the practical policy relevance of alternative moral arguments (or rationalizations) that undergird international public policymaking even in a technically sophisticated issue arena.The article begins with three distinct literatures that inform the study. Section 1 reviews contrasting ways that the ideas of "equality" and "finance" are linked in contemporary debates worldwide. Section 2 turns to international relations theory to develop the concept of a would-be leader state's "international political-economic project," identifying three such at present in the Western Hemisphere. The third section provides a snapshot of the financial architectures of the nine largest countries in the Americas and their international links. Sections 4 through 6 then demonstrate

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Costs of banking system instability: Some empirical evidence

Cited by 325 publications

References 13 publications

The Cost of Banking Crises: New Evidence from Life Satisfaction Data

The Cost of Banking Crises: New Evidence from Life Satisfaction Data

Financial Innovation, Macroeconomic Stability and Systemic Crises

Equality and Regional Finance in the Americas

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