large parts of the world. In this paper we explore the financial and the trade channel in a unified framework and quantify …, resulting in larger cumulated output losses and a prolonged crisis particularly in the UK. Stricter enforcement of bank capital …

major sets of crises (post-World War I crisis and the Great Depression); the post-World War II financial lock-down, which …

Most theoretical central bank models use short horizons and focus on a single tradeoff. However, in reality central … bankruptcy. We term these factors discipline and stability effects, respectively. The central bank's welfare decreases with …

-based measures of systemic bank shocks (SBS). These measures differ from “banking crisis” (BC) indicators employed in many empirical … studies, which are constructed using primarily information on government actions undertaken in response to bank distress … that BC indicators actually measure lagged policy responses to systemic bank shocks. We then re-examine the impact of …

.5 percentage points due to weak-bank attachment, representing between 8% and 36% of aggregate job losses …