Financial losses can have persistent effects on the financial sy stem. This paper proposes an empirical measure for the duration of these effects, S pillover P ersistence. I d ocument that Spillover Persistence is strongly correlated with financial c onditions; d uring b anking crises, Spillover...

This paper studies optimal time-consistent macroprudential policy in a model with endogenous capital formation. Previous studies on optimal time-consistent macroprudential policy in economies where borrowing is limited by the value of collateral assume that aggregate capital is fixed or apply...

We propose the CoJPoD, a novel framework explicitly linking the cross-sectional and cyclical dimensions of systemic risk. In this framework, banking sector distress in the form of the joint probability of default of financial intermediaries (reflecting contagion from both direct and indirect...

Nicht zuletzt nach Ausbruch der Covid-19-Pandemie stand die Stabilität des deutschen Bankensystems als integraler Bestandteil des nationalen Finanzsystems unter besonderer Beobachtung. Entscheidend für die Finanzstabilität ist die Frage, ob die Banken ausreichend gegen Stresseffekte...

The stability of the German banking system, in its capacity as an integral component of the country's financial system, has come under particular scrutiny, not least since the onset of the COVID-19 pandemic. Financial stability hinges on whether banks are sufficiently resilient to stress...

Motivated by the current discussion on different separate banking systems, we provide an overview of the different systems, question them and outline their effect on systemic stability and the German banking sector. The results show that the various separate banking systems only play a minor...

The experience in the period during and after the Asian crisis of 1997-98 has provoked an extensive debate about the credit rating agencies' evaluation of sovereign risk in emerging markets lending. This study analyzes the role of credit rating agencies in international financial markets,...

In 1998 Rüdiger Dornbusch gave the Munich Lectures in Economics entitled "International Financial Crises". The CES Academic Council awarded him the prize and title "Distinguished CES Fellow" for his outstanding work on the monetary theory of foreign trade.Rüdiger Dornbusch passed away on July...

The more severe a financial crisis, the greater has been the likelihood of its management under an IMF-supported programme and the shorter the time from crisis onset to programme initiation. Political links to the United States have increased programme likelihood but have prompted faster...

Why are some financial crises associated with political crises and some are not? Does political instability cause financial fragility or the other way around? What are the implications of political distortions for policy in countries experiencing financial turmoil? This paper studies these and...