This article discusses the importance of ideology, institutions, politics, and economic knowledge for forecasting economic policies and their impact on macroeconomic developments. Following a general discussion of those factors, the article illustrates their forecasting usefulness by drawing on...

This article focuses on the study of the impact of prudential banking regulations on the risk of bank failures in the Eurozone during the subprime financial crisis. Two indicators of bankruptcy risk measures are used:(i) the Z-score and (ii) the rating. The methodology adopted consists of making...