The recent financial crisis raises important issues about the transmission of financial shocks across borders. In this paper, a global vector autoregressive (GVAR) model is constructed to assess the relevance of international spillovers following a historical slowdown in U.S. equity prices. The...

Intro -- Contents -- I. INTRODUCTION -- II. SYSTEMIC RISK IN THE SINGLE FINANCIAL MARKET -- III. THE ARCHITECTURE FOR FINANCIAL CRISIS MANAGEMENT -- IV. THE LENDER OF LAST RESORT FUNCTION IN PRACTICE -- V. CHALLENGES -- VI. WAYS FORWARD: COORDINATION VS. CENTRALIZATION OF POLICYMAKING --...

This study empirically analyzes the determinants of bond market development in a cross section of 23 sub-Saharan African (SSA) countries between 1990 and 2008. It considers the stage of development and the size of the bond market, as well as the historical, structural, institutional and...

Understanding how corporate bond market disruptions are transmitted to the rest of the financial system is essential to gauge systemic financial risk and design policy responses. In this study, we extend the vector autoregression model of Gilchrist and Zakrajšek (2012) to explicitly account for...

This paper explores the dynamic relationship between firm debt and real outcomes using data from 24 European economies over the period of 2000-2018. Based on macro data, it shows that a rise in credit to firms is associated with an increase in employment growth in the short-term, but employment...

Most tax systems create a tax bias toward debt finance. Such debt bias increases leverage and may negatively affect financial stability. This paper models and estimates debt bias in the financial sector, and present novel estimates for investment banks and non-bank financial intermediaries such...

This paper estimates the scarring effect of recessions on corporates' investment and how it is amplified by the level of corporate debt. Our results suggest that the effect of firms' debt in shaping the response of investment to recessions is statistically significant and economically sizeable,...

This paper examines empirically U.S. broad money demand emphasizing the role of financial market risk. We find that money demand rises with the liquidity risk of stock markets or the credit risk of corporate bond markets. After controlling for the effect of financial market risk, money demand...

This paper takes stock of the current state of development of the financial systems in five Central European transition economies (the Czech Republic, Hungary, Poland, the Slovak Republic, and Slovenia) that are also leading EU accession candidates. It presents both a progress report and an...