Financial Crises and Economic Activity

Stephen Cecchetti, Marion Kohler and Christian Upper

No 15379, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the output costs of 40 systemic banking crises since 1980. Most, but not all, crises in our sample coincide with a sharp contraction in output from which it took several years to recover. Our main findings are as follows. First, the current financial crisis is unlike any others in terms of a wide range of economic factors. Second, the output losses of past banking crises were higher when they were accompanied by a currency crisis or when growth was low at the onset of the crisis. When accompanied by a sovereign debt default, a systemic banking crisis was less costly. And, third, there is a tendency for systemic banking crises to have lasting negative output effects.

JEL-codes: E32 E44 G01 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-fdg, nep-his and nep-mac
Note: ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (100)

Published as Stephen G. Cecchetti & Marion Kohler & Christian Upper, 2009. "Financial crises and economic activity," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 89-135.

Downloads: (external link)
http://www.nber.org/papers/w15379.pdf (application/pdf)

Related works:
Journal Article: Financial crises and economic activity (2009)
Working Paper: Financial Crises and Economic Activity (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:15379

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w15379

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().