The Real Effects of Financial Sector Interventions during Crises

Does Economic Collaboration Adjust The Effects Of Financial Crises On Poverty In The Islamic Countries

A Discussion on the Effects of Currency Crises on the Real Sector of Iran’s Economy: The Reaction of Productivity, Employment and Economic Growth

Crises stemming from the financial sector of economy and their possible effects on the structures of the real sector of economy including total factor productivity (TFP), labor productivity, employment and economic growth are the principal problem statement of the present study. To analyze of this problem two non-linear models have been specified. Both of them employ Iran’s macro data as well a...

Financial Crises and Political Crises∗

The simultaneous determination of financial default and political crises is studied in an open economy model. Political crises accompany default in equilibrium because of an information transmission conflict between the government and the public. Multiple equilibria are possible: if foreign lenders are pessimistic about the country’s stability, they demand a high interest on the debt, exacerbat...

Real Output Costs of Financial Crises: A Loss Distribution Approach∗

The adverse effects of financial crises in terms of output losses or output growth below its potential can be treated like losses from catastrophic events which have a low likelihood but a large impact in the event that they occur. We therefore analyze GDP losses in terms of frequency (number of loss events per period) and severity (loss per occurrence). Crises’ frequency, severity, and the ass...

Larger Crises, Slower Recoveries: The Asymmetric Effects of Financial Frictions

Lending rates are more likely to experience big jumps rather than big drops. I compare this asymmetry across countries. First, I document that lending rates are more asymmetric in economies with poor financial systems. Second, I explain this finding by introducing agency costs into a model with endogenous flow of information about the aggregate state of the economy. High monitoring costs magnif...