Systemic Crises and Growth

Rancière, Romain; Tornell, Aarón; Westermann, Frank

doi:10.3386/w11076

Cited by 80 publications

(90 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This result is consistent with recent models (e.g. Schneider and Tornell, 2004;Ranciere et al, 2008) showing that countries with intermediate levels of institutional quality that are characterized by limited contract enforcement and bailout guarantees are more likely to experience sudden stops. Aghion et al, (2004) present a model showing that countries with intermediate levels of financial development experience the most instability as a result of financial liberalization.…”

Section: Introductionsupporting

confidence: 92%

See 1 more Smart Citation

Bankruptcy costs, liability dollarization, and vulnerability to sudden stops

Aysun

Honig

2011

Journal of Development Economics

View full text Add to dashboard Cite

Emerging market countries that have improved institutions and attained intermediate levels of institutional quality have experienced severe financial crises following capital flow reversals. However, there is also evidence that countries with strong institutions and deep capital markets are less affected by external shocks. We reconcile these two observations using a calibrated DSGE model that extends the financial accelerator framework developed in Bernanke, Gertler, and Gilchrist (1999). The model captures financial market institutional quality with creditors. ability to recover assets from bankrupt firms. Bankruptcy costs affect vulnerability to sudden stops directly but also indirectly by affecting the degree of liability dollarization. Simulations reveal an inverted U-shaped relationship between bankruptcy recovery rates and the output loss following sudden stops. We provide empirical evidence that this non-linear relationship exists. Journal of Economic Literature Classification: E44; F31; F41

show abstract

Section: Introductionsupporting

confidence: 92%

“…Honig (2008a) finds that countries with moderate levels of institutional quality experience more frequent recessionary sudden stops. Ranciere et al (2008) find that the link between negative credit skewness and growth is strongest in the set of financially liberalized countries with a medium degree of contract enforceability.…”

Section: Introductionmentioning

confidence: 82%

Bankruptcy costs, liability dollarization, and vulnerability to sudden stops

Aysun

Honig

2011

Journal of Development Economics

View full text Add to dashboard Cite

show abstract

“…Odedokun (2003) however finds a positive impact of financial sector development on all capital flows, including FDI. Some of the contradictory results may have been triggered by the fact that financial development promotes growth, but also makes a country more crisis-prone (Ranciere et al, 2008).…”

Section: Financial Developmentmentioning

confidence: 99%

Private Capital Flows to Low Income Countries: Country-Specific Effects and the Lucas Paradox

KIPP

Wijnbergen

2010

SSRN Journal

View full text Add to dashboard Cite

Private capital flows to low income countries: country-specific effects and the Lucas Paradox Franken, C.; van Wijnbergen, S.J.G. Link to publication General rightsIt is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). Disclaimer/Complaints regulationsIf you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: http://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible.

show abstract

“…Rancière, Tornell, and Westermann (), Levchenko, Rancière, and Thoenig (), and Bruno and Hauswald ().…”

mentioning

confidence: 99%

Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm?

Haas¹,

Lelyveld²

2014

J of Money Credit Banking

275

View full text Add to dashboard Cite

We use data on the 48 largest multinational banking groups to compare the lending of their 199 foreign subsidiaries during the Great Recession with lending by a benchmark group of 202 domestic banks. Contrary to earlier, more contained crises, parent banks were not a significant source of strength to their subsidiaries during the 2008-09 crisis. As a result, multinational bank subsidiaries had to slow down credit growth about twice as fast as domestic banks. This was in particular the case for subsidiaries of banking groups that relied more on wholesale market funding. Domestic banks were better equipped to continue lending because of their greater use of deposits, a relatively stable funding source during the crisis. We conclude that while multinational banks may contribute to financial stability during local crisis episodes, they also increase the risk of 'importing' instability from abroad.

show abstract

Systemic Crises and Growth

Cited by 80 publications

References 1 publication

Bankruptcy costs, liability dollarization, and vulnerability to sudden stops

Bankruptcy costs, liability dollarization, and vulnerability to sudden stops

Private Capital Flows to Low Income Countries: Country-Specific Effects and the Lucas Paradox

Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm?

Contact Info

Product

Resources

About