midst of credit intensive booms and bring about particularly deep and long-lasting recessions. We attempt to explain these … information on this market may generate sudden interbank market freezes, SBCs, credit crunches and, ultimately, severe recessions …. Simulations of a calibrated version of the model indicate that typical SBCs break out in the midst of a credit boom generated by a …

Banking crises are rare events that break out in the midst of credit intensive booms and bring about particularly deep … freezes, banking crises, credit crunches and, ultimately, severe recessions. The model can potentially generate various types … of banking crises. But the typical crisis breaks out endogenously, during a credit boom generated by a sequence of small …

domestic banking crises. Using a new data set for 38 advanced and emerging economies over 1970–2011, we show that credit growth … in the rest of the world has a large positive effect on the probability of banking crises taking place at home, even when … controlling for domestic credit growth. Our results suggest that this effect is larger for financially open economies, and is …

the U.S. would experience a sudden stop of capital flows, which would unavoidably drag the world economy into a deep … instead that the root imbalance was of a different kind: The entire world had an insatiable demand for safe debt instruments … of exposing the economy to a systemic panic. This structural problem can be alleviated if governments around the world …

credit default swaps for investors is to blame for the financial crisis. We find little evidence for this. Housing data … credit default swaps that were used to insure mortgage-backed securities would have been low because housing investments were …