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This paper brings together the results from new empirical analysis on how – under international capital mobility – financial account structure and structural policies can contribute to financial stability. More specifically, the analysis has identified features of financial accounts and...
Persistent link: https://www.econbiz.de/10009691011
financial contagion, or by directly reducing the risk of financial crises. Differentiated capital controls are found to affect … domestic capital adequacy requirements for banks, greater reliance of a domestic banking system on deposits, controls on credit … market inflows, and openness to foreign bank entry are found to reduce the vulnerability to financial contagion. Finally …
Persistent link: https://www.econbiz.de/10009691018
Effective macroeconomic and structural policies helped Turkey bounce back quickly and strongly from the global crisis, with annual growth averaging close to 9% over 2010-11. However, the current account deficit widened to around 10% of GDP in 2011 and consumer price inflation rose to over 10%....
Persistent link: https://www.econbiz.de/10009690909
Turkey recovered swiftly from the global financial crisis but sizeable macroeconomic imbalances arose in the process. High consumer price inflation and a wide current account deficit are sources of vulnerability. Even though below-potential growth helps rebalancing and disinflation, these...
Persistent link: https://www.econbiz.de/10010464946
Using a large panel of OECD countries this paper studies the link between debt and macroeconomic stability by comparing the evolution of balance sheet aggregates and economic output in high- and lowdebt environments. While the relationship between debt and economic growth has been extensively...
Persistent link: https://www.econbiz.de/10009696437
the banking sector in most countries, with the exception of vulnerable euro area economies, monetary policy stimulus did …
Persistent link: https://www.econbiz.de/10010231109
yields would risk generating instability in the US shadow banking sector, and the financial system more generally, even if … spillovers given their generally less liquid financial markets and, in some cases, weak fundamentals related to the banking … strengthening the resilience of shadow banking institutions so that the risk of liquidity-induced fire sales is reduced. This should …
Persistent link: https://www.econbiz.de/10010374407
This paper shows that finance has been a key ingredient of long-term economic growth in OECD and G20 countries over the past half-century, but that there can be too much finance. The evidence indicates that at current levels of household and business credit further expansion slows rather than...
Persistent link: https://www.econbiz.de/10011399476
Persistent link: https://www.econbiz.de/10011345881
Persistent link: https://www.econbiz.de/10009689347