The financial system plays a crucial role in economic development. Financial crises are recurrent phenomena in modern financial systems. The literature offers several definitions of financial instability, but it is well known that a financial crisis with a banking crisis is the most common example of financial instability. In this paper we introduce a novel model for detection and prediction of...

The economic literature provides useful insights into the nature and causes of the current crisis. I am thinking in particular of the literature highlighting the fragility of equilibria and the possibility of self-fulfilling prophecies. A literature that includes the seminal work of Diamond and Dybvig (1983) on bank runs, which has inspired a large number of papers dealing with financial crises...

The global food supply system is facing serious new challenges from economic and related crises and climate change, which directly affect the nutritional well-being of the poor by reducing their access to nutritious food. To cope, vulnerable populations prioritize consumption of calorie-rich but nutrient-poor food. Consequently, dietary quality and eventually quantity decline, increasing micron...

We examine the impact of corporate currency hedging on economic stability by introducing hedging activity in a Mundell-Fleming-Tobin framework for analyzing currency and financial crises. The ratio between hedged and unhedged firms is modelled depending on firm size as well as hedging costs. The results indicate that, with an increasing fraction of hedged firms in an economy, the magnitude of a...

Many analyses of urban phenomena in developing countries occur in an intellectual and urban policy bubble which ignores the impacts of global economic phenomena. “Urban conventional wisdom” ignores the role of global capital flows in urban capital formation in housing and infrastructure. This narrative neglects the central role of urban employment in the generation of urban incomes and liveliho...

In addition to their direct effects, episodes of financial instability may decrease investor confidence. Measuring the impact of a crisis on investor confidence is complicated by the fact that it is difficult to disentangle the effect of investor confidence from coincident direct effects of the crisis. In order to isolate the effects of financial crises on investor confidence, we study the inve...