Dell'Ariccia, Giovanni; Rajan, Raghuram; Detragiache, Enrica - International Monetary Fund (IMF) - 2005
Banking crises are usually followed by a decline in credit and growth. Is this because crises tend to take place during … economic downturns, or do banking sector problems have independent negative effects on the economy? To answer this question we … examine industrial sectors with differing needs for financing. If banking crises have an exogenous detrimental effect on real …