We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the...

Latin America has been strongly affected by the international crisis and recession since late 2008. In comparison to historical experience, how has Latin America coped with the global crisis, which has been the role of different transmission mechanisms, and how have the region's structural and...

In the wake of the COVID-19 pandemic, numerous high-income countries encountered heightened vacancy rates and labour shortages, which persisted into 2023. This paper examines the dynamics underlying labour market fluctuations in advanced economies, such as cyclical movements, structural shifts...

A slanted-L curve is well-suited to represent the non-linearity of the celebrated Phillips curve. We show this using cross-country data of major industrialized economies since 2009, including the inflationary surge of the 2020s. At high unemployment rates, an increase in demand reduces...

A worldwide trend began in the 1980s in both developed and developing countries to restructure their power sectors and reform their regulatory framework. The motivation in developed countries to restructure and reform was mainly to improve sector efficiency, while in the developing countries, it...

We characterize asset return linkages during periods of stress by an extremal dependence measure. Contrary to correlation analysis, this nonparametric measure is not predisposed toward the normal distribution and can allow for nonlinear relationships. Our estimates for the G-5 countries suggest...

Two separate narratives have emerged in the wake of the Global Financial Crisis. One speaks of private financial excess and the key role of the banking system in leveraging and deleveraging the economy. The other emphasizes the public sector balance sheet over the private and worries about the...

This paper develops a framework for assessing systemic risks and for predicting (out-of-sample) systemic events, i.e. periods of extreme financial instability with potential real costs. We test the ability of a wide range of “stand alone” and composite indicators in predicting systemic...

In modernen Gesellschaften steht das Thema Gerechtigkeit ganz oben auf der politischen Agenda. Viele Menschen sind der Ansicht, die soziale Gerechtigkeit habe in den letzten Jahren abgenommen. Unklar bleibt dabei, was unter Gerechtigkeit verstanden wird. Der Gerechtigkeitsindex des Instituts der...