Similar Search Results

Financial development, financial fragility, and growth

Loayza, Norman; Rancière, Romain - 2002

This paper attempts to reconcile the apparent contradiction between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of financial depth as measured by, for instance, private...

Persistent link: https://www.econbiz.de/10001653707

Boom-bust cycles in middle income countries : facts and explanation

Tornell, Aaron; Westermann, Frank - 2002

countries, as well as the 'boom-bust cycle' that has been observed during the last two decades. We find that many countries that … have liberalized their financial markets, have witnessed the development of lending booms. Most of the time the boom … gradually decelerates. But sometimes the boom ends in twin currency and banking crises, and is followed by a protracted credit …

Persistent link: https://www.econbiz.de/10001688773

Financial crisis, economic recovery and banking development in former Soviet Union economies

Huang, Haizhou; Marin, Dalia; Xu, Chenggang - 2003

This paper explains both the onset of the financial crisis in 1998 and the striking economic recovery afterwards in Russia and other Former Soviet Union (FSU) economies. Before the crisis banks do not lend to the real sector of the economy and firms use non-bank finance, including trade credits...

Persistent link: https://www.econbiz.de/10001740678

Crises and growth : a re-evaluation

Rancière, Romain; Tornell, Aaron; Westermann, Frank - 2004

We address the question of whether growth and welfare can be higher in crisis prone economies. First, we show that there is a robust empirical link between per-capita GDP growth and negative skewness of credit growth across countries with active financial markets. That is, countries that have...

Persistent link: https://www.econbiz.de/10002017670

Stochastic optimal control, international finance and debt

Fleming, Wendell H.; Stein, Jerome L. - 2002

We use stochastic optimal control-dynamic programming (DP) to derive the optimal foreign debt/net worth, consumption/net worth, current account/net worth, and endogenous growth rate in an open economy. Unlike the literature that uses an Intertemporal Budget Constraint (IBC) or the Maximum...

Persistent link: https://www.econbiz.de/10001688754

A stochastic optimal control approach to international finance and foreign debt

Fleming, Wendell Helms; Stein, Jerome L. - 1999

The recent financial crises, especially the debt crisis in Asia, have led to questions such as: what are their causes, what is an excessive debt and how vulnerable is an economy to external shocks? We develop an economic model of international finance and debt based upon two sources of...

Persistent link: https://www.econbiz.de/10001435820