scholarly journals A NOTE ON BANKING AND HOUSING CRISES AND THE STRENGTH OF RECOVERIES

2015 ◽  
Vol 20 (7) ◽  
pp. 1924-1933 ◽  
Author(s):  
Jens Boysen-Hogrefe ◽  
Nils Jannsen ◽  
Carsten-Patrick Meier
Keyword(s):  
Banking Crises ◽  
Advanced Economies ◽  
Output Losses ◽  
Bounce Back

We investigate whether recoveries following normal recessions differ from recoveries following recessions that are associated with either banking crises or housing crises. Using a parametric panel framework that allows for a bounce-back in the level of output during the recovery, we find that normal recessions are followed by strong recoveries in advanced economies. This bounce-back is absent following recessions associated with banking crises and housing crises. Consequently, the permanent output losses of recessions associated with banking crises and housing crises are considerably larger than those of normal recessions.

The Real Output Losses Associated with Modern Banking Crises

2005 ◽  
Vol 37 (6) ◽  
pp. 977-999 ◽  
Author(s):  
John H. Boyd ◽  
Sungkyu Kwak ◽  
Bruce Smith
Keyword(s):  
Banking Crises ◽  
Real Output ◽  
The Real ◽  
Output Losses

scholarly journals Recovery from Financial Crises: Evidence from 100 Episodes

2014 ◽  
Vol 104 (5) ◽  
pp. 50-55 ◽  
Author(s):  
Carmen M. Reinhart ◽  
Kenneth S. Rogoff
Keyword(s):  
United States ◽  
Business Cycles ◽  
Financial Crises ◽  
The United States ◽  
Banking Crises ◽  
Real Income ◽  
Per Capita Gdp ◽  
Advanced Economies ◽  
Per Capita ◽  
Post War

We examine the evolution of real per capita GDP around 100 systemic banking crises. Part of the costs of these crises owes to the protracted nature of recovery. On average, it takes about 8 years to reach the pre-crisis level of income; the median is about 6.5 years. Five to six years after the onset of crisis, only Germany and the United States (out of 12 systemic cases) have reached their 2007-2008 peaks in real income. Forty-five percent of the episodes recorded double dips. Post-war business cycles are not the relevant comparator for the recent crises in advanced economies.

What determines output losses after banking crises?

2016 ◽  
Vol 69 ◽  
pp. 69-94 ◽  
Author(s):  
John Devereux ◽  
Gerald P. Dwyer
Keyword(s):  
Banking Crises ◽  
Output Losses

Stock markets and the costs of banking crises

2014 ◽  
Vol 6 (4) ◽  
pp. 342-361 ◽  
Author(s):  
Tess DeLean ◽  
Joseph P. Joyce
Keyword(s):  
Stock Markets ◽  
Empirical Investigation ◽  
Equity Markets ◽  
Banking Crises ◽  
Regulatory Oversight ◽  
Content Type ◽  
Output Losses ◽  
The Impact ◽  
Practical Implications ◽  
Output Costs

Purpose – This paper aims to investigate whether stock markets can reduce the output costs of banking crises. The work is motivated by Alan Greenspan’s claim that capital markets serve as a financial “spare tire” in the event of a banking crisis. Design/methodology/approach – We test the impact of stock market capitalization, liquidity and turnover on the output losses of 76 banking crises in 66 countries over the period of 1975-2008. Findings – Our results indicate that stock markets can mitigate the effect of banking crises on economic activity. There is also some evidence that foreign equity holdings lower output costs. Practical implications – These results suggest that the development of equity markets will contribute to reducing the costs of banking crises. Such development, however, should be accompanied by adequate supervisory and regulatory oversight. Originality/value – Our analysis is the first direct empirical investigation of the impact of stock markets on the output costs of banking crises. This paper demonstrates that equity markets can lessen the severity of such crises.

How to Resist and Bounce Back When Things Get Tough

PsycCRITIQUES ◽  
2011 ◽  
Vol 56 (17) ◽  
Author(s):  
Victor A. Colotla
Keyword(s):  
Bounce Back
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