Bordo, Michael D.; Dueker, Michael J.; Wheelock, David C. - In: Economic Inquiry 40 (2002) 4, pp. 521-538
This article presents evidence on the relationship between price and financial stability. We construct an annual index of financial conditions for the United States, 1790--1997, and estimate the effect of aggregate price shocks on the index using a dynamic ordered probit model. We find that...