Quantifying worldwide economic distress

Abstract

This paper proposes a new measure for worldwide economic distress, which can be described as the proportion of the gross domestic product (GDP) affected by countrylevel financial crises. It proves that this measure has the desirable properties of fair and representative indices. It also adequately justifies the beliefs of some economists that financial crises have negative effects on economic performance.

Economic resilience of the command and control function of cities in Central and Eastern Europe

“…According to Anh, Thuy and Khanh (2018) an economic crisis may be triggered by a budget deficit, international currency reserves or increases in national debt. In a purely financial sense, a crisis may be defined by a depreciation of local currency against the U.S. dollar of at least 30%, and this decline is higher than 10 percentage points relative to previous years (Delbianco, Fioriti and Tohmé 2019). Corporate performance suffers over the course of a financial crisis, as does corporate management quality, with executives attempting to maximise their own compensation packages at the expense of company financial performance (Cornett et.…”