This paper analyzes the causes and implications of recent financial crises. Financial crises in general lead to changes in both theory and practice of economics. The paper takes an historical overview. The global consensus of economic theory during the 20th century is discussed. The paper...

The recent European economic crisis has dramatically exposed the failures of the various institutional mechanisms in place to maintain economic stability in Europe, and has unveiled the difficulty in achieving international coordination on fiscal and financial stability policies. Drawing on the...

This brief provides a short guiding tour to the Euro zone crisis. It looks at the current situation, the context in which the zone has to deal with such a situation, the way we got here, and the possible way out. The latter outlines a set of minimum steps required to make the euro sustainable

Recent economic developments highlight Latin America's vulnerability to economic and financial turmoil that is triggered by events in distant corners of the globe. The Asian financial crisis that began in 1997 and the Russion crisis have left the region profoundly shaken and fearful of a...

We follow a representative panel of millions of consumers in the U.S. from 2007 to 2017 and document several facts on the long-term effects of the Great Recession. There were about six million foreclosures in the ten-year period after Lehman's collapse. Owners of multiple homes accounted for 25%...

PurposeThe purpose of this paper is to examine the link between banking crises and the subjective well-being of individuals. In addition, the authors examine the transmission of crises from the banking sector to well-being and show that negative financial shocks have significant adverse...

This paper describes recent trends on the effectiveness of stabilisers in the European Union. Using both macro evidence on the cyclical sensitivity of budget deficit to economic activity and micro evidence on the tax and expenditure profiles, we conclude, in agreement with the recent literature,...

This paper conducts a comprehensive analysis of the fiscal costs of financial instability (defined as major asset price changes and including, as extreme cases, financial crises). The study identifies three channels to fiscal accounts: 1) revenue effects on capital gains, asset turnover and...

In this paper, we assess the happiness cost of Brexit in the UK and the EU, using data from the Gallup World Poll. We implement a two-stage learning machine, using a naive Bayes classifier to extract happiness preferences of the population and then passing these onto an artificial neural network...

In this paper the authors ask whether the Asian financial crisis was unnecessary. They propose rethinking the Asian financial crisis through the relatively new capital account crisis paradigm, originally proposed by Masaru Yoshitomi. The authors argue that this paradigm provides a much more...