What’s the Damage? Medium-term Output Dynamics After Banking Crises

Abdul Abiad, Ravi Balakrishnan, Petya Koeva Brooks, Daniel Leigh, and Irina Tytell

What’s the Damage? Medium-term Output Dynamics After Banking Crises

This paper investigates the medium-term behavior of output following banking crises, and its association with pre- and post-crisis conditions and policies. The authors find that output tends to be depressed substantially following banking crises, with no rebound to the pre-crisis trend. However,...
Topics: 
Economy