Popular governments could be a sign of future financial crises
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 →