In this paper, we examine the influence of information rigidities concerning the net worth of banks on the real economy over time. In a first part, we show empirically that expectations about the net earnings of banks (as growth of net worth) are truly biased, particularly during the financial...

From a broad macro-financial structure perspective, overly easy credit conditions gave rise to house price booms and busts in several advanced economies (e.g., Ireland, Spain, and the U.S.), and, more specifically in the U.S., an underpricing of risk made possible by regulatory arbitrage and...

This paper examines five possible explanations for the Great Recession of 2008 and 2009, using data for the United States and the eurozone. Of these five hypotheses, four are not supported by the data, while the fifth appears reasonable.

The recent financial crises pointed out the central role of public and private debt in modern economies. However, even if debt is a recurring topic in discussions about the current economic situation, economic modeling does not take into account debt as one of the crucial determinants of...

Since the end of the Great Recession, growth in health care spending has declined to historically low levels. There is disagreement over whether this decline was caused by falling incomes during the Great Recession (and therefore is likely to reverse once the recovery is complete) or whether the...

A decade has passed since the Asian Financial Crisis (AFC) in 1997, and attention is drawn to the output performance of the crisis-affected economies in East Asia. Using the Hodrick-Prescott filter, this paper examines the growth volatility of GDP, its components and the stock market of five...

Most United States MSAs saw their house prices plummet during the recent Great Recession. While many are only beginning to pull away from their lowest house prices in recent history, other MSAs are already well on their way to house price recovery. We believe that one attribute which separates...

We examine the relationship of banking crises with economic growth and recessions. Our data cover 21 economies from around the world, most from 1870 to 2009 with the rest starting in 1901 or earlier. The data include capital investment and human capital formation. We have two major findings....

Il presente lavoro studia le relazioni che intercorrono fra fluttuazioni endogene e crisi finanziarie facendo riferimento ad alcuni concetti, strumenti e metodologie che si rifanno all'analisi di Minsky. In particolare, l'articolo utilizza una funzione degli investimenti basata sul concetto di...

Somebody must step up. Somebody must call out the stabilization irrelevance of the American Economic Association's signature macro journal, American Economic Journal: Macroeconomics. The on-going failure of the nine-year-old journal is most egregiously illustrated by its treatment of the Great...