The economics profession appears to have been unaware of the long build-up to the current worldwide financial crisis and to have significantly underestimated its dimensions once it started to unfold. In our view, this lack of understanding is due to a misallocation of research efforts in...

The economics profession appears to have been unaware of the long build-up to the current worldwide financial crisis and to have significantly underestimated its dimensions once it started to unfold. In our view, this lack of understanding is due to a misallocation of research efforts in...

This paper presents the theoretical structure of MAPMOD, a new IMF model designed to study vulnerabilities associated with excessive credit expansions, and to support macroprudential policy analysis. In MAPMOD, bank loans create purchasing power that facilitates adjustments in the real economy....

This paper, together with a technical companion paper, presents MAPMOD, a new IMF model designed to study vulnerabilities associated with excessive credit expansions, and to support macroprudential policy analysis. In MAPMOD, bank loans create purchasing power that facilitates adjustments in the...

The latter financial crisis has led in many occasions to a reconsideration of the present economic system. Before suggesting any reform, this paper intends to observe whether the root of the business cycles is indeed a tragedy of the commons in the present banking system, the aim being that...

There is a line of reasoning which argues that the main source of the current financial crisis is the cheap money of the past, which would have caused large global imbalances and another, that I share, is that something wrong has been occurring with overall financial intermediation. The...

This paper investigates the main determinants of the market-assessed sovereign risk premium in Romania, measured by the Option-Adjusted Spreads, from 2003 to 2013. The results show that the dynamics of sovereign spreads can be explained by both risk aversion indicators and macroeconomic...

There has been much debate on whether the investment in Information Technology provides improvements in productivity and business efficiency of banks and, weather the usage of the opportunities of Digital Technologies to better serve customers and achieve firm goals the proliferation of...

This chapter analyses the spread of the sovereign debt crisis in the Eurozone. To this end we employ three approaches. The first approach employs univariate autoregressive models. These allow the identification of shocks to government bond yields in Portugal, Italy, Ireland, Greece, Spain and...

The chapter explores current stance of developments in Serbian credit market, by looking at credit aggregates and interest rates. Although, there are signs of weak credit market, full scale credit crunch is so far avoided thanks to efforts coordinated by the key stakeholders: IMF, National Bank...