This paper builds a database of idiosyncratic shocks (events) in global banks and car manufacturers (as representative of non-financial firms), and focuses on how these influence a number of macroeconomic and firm-specific variables in the short- and medium-term. We find that these shocks spawn...

In the workhorse model of international real business cycles, financial integration exacerbates the cycle asymmetry created by country-specific supply shocks. The prediction is identical in response to purely common shocks in the same model augmented with simple country heterogeneity (eg, where...

A banking operation is at the epicenter of financial intermediation, and there is no perfect substitute for it in capital markets. Because a banking operation revolves around a constant inventory of risks, in the event of a financial or economic crisis, banks therefore get hit as the first line...