Many emerging markets have undertaken significant financial sector reforms especially in their banking sectors that have been quite critical for both financial development and real economic activity. In this paper, we investigate the success of banking reforms in India where significant banking...

We provide a comprehensive account of the dynamics of eurozone countries from 2000 to 2012. We analyze private leverage, fiscal policy, labor costs and interest rates and we propose a strategy to separate the impact of credit cycles, excessive government spending, and sudden stops. We then ask...

How does firm dynamically adjust its capital and debt structure in response to interest rate risk? Using micro-data, I find that bond spread increases more than loan spread and firms rebalance towards bank loans and away from corporate bonds in response to unexpected monetary tightening. I...