The aim of this paper is to assess the impact of financial crises on potential output. For this purpose a univariate autoregressive growth equation is estimated on an unbalanced panel of OECD countries over the period 1960 to 2007. Our results suggest that the occurrence of a financial crisis...

This overview paper examines the financial crisis in light of past country experience and economic theory and sets out some preliminary policy recommendations. A number of facets of the crisis are detailed, including its origins and spreading factors as well as crisis resolution policies and...

Financial innovation and integration have spurred financial development and enhanced consumer choice. Financial integration has also been associated with the emergence of large, complex, cross-border financial institutions (LCFIs). This has changed risk profiles and made cross-border contagion...

This paper examines the characteristics of downturns and subsequent recoveries following past banking crises in OECD countries as well as evidence of any effects on potential output growth. It is differentiated from previous analyses because it makes use of OECD measures of the output gap and...

In this paper we provide a general characterization of diffusion processes, allowing us to analyze both risk-sharing and contagion effects at the same time. We illustrate the relevance of our theory with reference to the subprime mortgage crisis and more in general to the processes of...

This brief paper a) focuses on important elements of the November Summit of G-20 Countries that resulted in the Washington Declaration; b) highlights problems with credit rating agencies and financial regulation; c) argues that the IMF is a laggard in being able to coordinate any major efforts...

We cannot afford to continue on the current path and let banks do as they please regardless of the risks for taxpayers and the economy, according to Joseph Stiglitz.

Battered housing prices are central to today's financial crisis, and Robert Lerman proposes a remedy that does not involve throwing money at Wall Street.

The rise of huge quasi-banks that are too big to fail caused the financial crisis, according to Ravi Jagannathan and John Boyd, and they propose a cure.

Robert Barro, Paul W. Warburg Professor of Economics at Harvard, questions the plausibility of large fiscal stimulus estimates.