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To explore the propagation of undesirable policies in a form of populist extremism, we construct a social learning model featuring agency problems. Politicians in different countries sequentially implement a policy. Voters learn the incumbent politician's type and the desirable policy by...
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To explore the propagation of populist extremism across countries, we construct a multi-country model wherein each country's politician sequentially implements a policy. Voters learn the incumbent politician's type and the desirable policy by observing foreign policies on top of the domestic...
Persistent link: https://www.econbiz.de/10012894379
. Recent events in Europe provide ample evidence that the political aftershocks of financial crises can be severe. In this … paper we study the political fall-out from systemic financial crises over the past 140 years. We construct a new long … strongly after financial crises as government majorities shrink and polarization rises. After a crisis, voters seem to be …
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The downturn in the world economy following the global banking crisis has left the Chinese economy relatively unscathed. This paper develops a model of the Chinese economy using a DSGE framework with a banking sector to shed light on this episode. It differs from other applications in the use of...
Persistent link: https://www.econbiz.de/10010397727
Systemic risk arises when shocks lead to states where a disruption in financial intermediation adversely affects the economy and feeds back into further disrupting financial intermediation. We present a macroeconomic model with a financial intermediary sector subject to an equity capital...
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