A well-documented predictor of financial crises are credit booms and capital flows. Indeed, many banking and current account crises (sudden stops) have been preceded by an unusual expansion of domestic and/or external credit (see for example Reinhart and Reinhart 2008, Forbes and Warncock 2012, Schularick and Taylor 2012, Mendoza andRead More →
Focus Growth and productivity are consistently weak following financial crises. This article examines how financial crises affect innovation. Patents are an important measure of the type of innovative activity that can lead to productivity gains. We study patent data from a large sample of countries and financial crises and examineRead More →
WikiImages /Pixabay The recent turmoil in global stock markets amid the coronavirus outbreak has left investors panicked and worried. The S&P 500 index has fallen more than 12% in the past two weeks. It’s nothing compared to what we (and our ancestors) have seen in the past. Here we examineRead More →