This paper tests whether an increase in insured deposits causes banks to become more risky. We use variation introduced by the U.S. Emergency Economic Stabilization Act in October 2008, which increased the deposit insurance coverage from $100,000 to $250,000 per depositor and bank. For some...

Global gross capital flows remain well below their peak before the global financial crisis, which was reached after a period of unusual expansion. Much of the decline can be attributed to a reduced flow of lending by banks – particularly to, from and within the euro area – as banks...

Has the financial crisis already changed US principles of economics textbooks? Rather little has changed in individual textbooks, but taken as a whole ten of the best-selling textbooks suggest rather encompassing changes of core curriculum. A critical analysis of these changes shows how...

We investigate the relationship between economic growth and lagged internationalcapital flows, disaggregated into FDI, portfolio investment, equity investment, and shorttermdebt. We follow about 100 countries during 1990-2010 when emerging marketsbecame more integrated into the international...

We analyze how the financial crisis affected a wide range of investments in Indonesian children and children’s outcomes including school enrollment, immunizations, and mortality. Our dataset is the National Socio-Economic Survey (Susenas), a large nationally representative sample. We...

JEL classification codes: O16, F23, E32, O12 Abstract: We investigate whether capital market imperfections constrain investment during an emerging market financial crisis. Both large currency devaluations and widespread collapse of the banking sector characterize recent crises. Although a...

An increasing body of literature discusses how and to which extent the financial crisis of 2007-2009 transmits to the real economy. This paper investigates the impact of the financial crisis of 2007-2009 on corporate investment, in particular research and development (R&D) expenditures. We...

La revisión de varios indicadores económicos muestra que tanto la crisis de alimentos como la crisis económica y financiera recientes tuvieron efectos negativos considerables sobre los países centroamericanos. La primera golpeó a la región entre el 2007 y mediados del 2008, mientras que la...

We analyze the impact of the countercyclical capital buffers held by banks on the supply of credit to firms and their subsequent performance. Countercyclical ‘‘dynamic’’ provisioning that is unrelated to specific loan losses was introduced in Spain in 2000, and modified...

We test whether adverse changes to banks' market valuations during the financial and sovereign debt crises, and the associated increase in banks' cost of funding, affected firms' real decisions. Using new data linking over 3,000 non-financial Italian firms to their bank(s), we find that...