Overleveraging of the banking sector has been considered as one of the main causes of the 2007-09 financial crisis and the subsequent great recession. It was also of major concern for the subsequent BIS regulatory policies resulting in Basel III and its request for higher capital requirements....

We analyze the feedback mechanisms between economic downturns and financial stress for several euro area countries. Our study employs newly constructed financial condition indices that incorporate banking variables extensively. We apply a non-linear Vector Smooth Transition Autoregressive...

We analyze the feedback mechanisms between economic downturns and financial stress for euro area countries. Our study employs newly constructed financial condition indices that incorporate extensively banking variables. We apply a nonlinear Vector Smooth Transition Autoregressive (VSTAR) model...

We analyze the feedback mechanisms between economic downturns and financial stress for several euro area countries. Our study employs newly constructed financial condition indices that incorporate banking variables extensively. We apply a non-linear Vector Smooth Transition Autoregressive...

The financial and economic crisis has drawn attention to the need for a better understanding of destabilising effects that arise in the financial sector and spill over to the real economy. In turn, weakening economic conditions are likely to feed back to the financial sector, thus giving rise to...

The authors analyse 149 newly compiled monthly time series on financial market stress conditions in the euro area. With the aid of a factor model they find different sources of financial stress that are important for selecting and preparing the appropriate policy response. The existence of a...

Reducing institutional rigidities in product and labour markets is key to lowering unemployment. The impact of such labour and product market reforms, however, depends crucially on the country-specific regulatory framework. In this paper, we estimate the country-specific impact of changes in six...

Die omnipräsente Staatsschuldenkrise im europäischen Raum gepaart mit hohen Energiepreisen drückt die Stimmung der deutschen Verbraucher. Hinzu kamen im zweiten Quartal 2011 die Folgen der Naturkatastrophe in Japan, die zu dem überstürzten Atomausstieg Deutschlands führten, und der Wegfall...

Das Jahr 2011 schloss nach drei wachstumsstarken Quartalen mit einem leichten Rückgang der Wirtschaftsleistung um 0,2 v.H. gegenüber dem Vorquartal. Für 2012 erwarten Experten eine geringere Dynamik als im Jahr 2011, wie sich in deren BIP-Prognosen zwischen 0,5 und 0,8 v.H. zeigt. Grund ist...