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market inflows, and openness to foreign bank entry are found to reduce the vulnerability to financial contagion. Finally …, vulnerability to international bank balance-sheet shocks is found to be lower in situations of abundant global liquidity …, underlining the importance of adequate central bank reactions in situations of financial turmoil. …
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The paper compares fiscal cyclicality across regions and countries from 1960 to 2016. It finds that more than half of 170 countries analyzed in seven regions had, in more recent years, limited fiscal space, and that their fiscal policy was either cyclical or procyclical. This was particularly...
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The three major credit rating agencies have reassessed sovereign credit risks in the light of the Great Financial Crisis, increasing the transparency of their methodologies. This has resulted in material shifts in the rank-ordering of risks. Simple statistical models explain the lion's share of...
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