flows--over the business cycle and during financial crises. We show that gross capital flows are very large and volatile … investing more abroad during expansions. During crises, especially during severe ones, there is retrenchment, that is, a …

We study the output costs of 40 systemic banking crises since 1980. Most, but not all, crises in our sample coincide … of past banking crises were higher when they were accompanied by a currency crisis or when growth was low at the onset of … a tendency for systemic banking crises to have lasting negative output effects. …

Fire sales that occur during crises beg the question of why sufficient outside capital does not move in quickly to take …

Bank liquidity is a crucial determinant of the severity of banking crises. In this paper, we consider the effect of … fire sales and foreign entry on banks' ex ante choice of liquid asset holdings, and the ex post resolution of crises. In a …, foreign entry reduces this incentive. We exhibit international evidence on foreign entry following crises and on banks' ex …