Arbeitspapier
Sovereigns versus Banks: Credit, Crises, and Consequences
Two separate narratives have emerged in the wake of the Global Financial Crisis. One speaks of private financial excess and the key role of the banking system in leveraging and deleveraging the economy. The other emphasizes the public sector balance sheet over the private and worries about the risks of lax fiscal policies. However, the two may interact in important and understudied ways. This paper studies the co-evolution of public and private sector debt in advanced countries since 1870. We find that in advanced economies financial stability risks have come from private sector credit booms and not from the expansion of public debt. However, we find evidence that high levels of public debt have tended to exacerbate the effects of private sector deleveraging after crises, leading to more prolonged periods of economic depression. Fiscal space appears to be a constraint in the aftermath of a crisis, then and now.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 4431
- Klassifikation
-
Wirtschaft
Semiparametric and Nonparametric Methods: General
Model Evaluation, Validation, and Selection
Money Supply; Credit; Money Multipliers
Current Account Adjustment; Short-term Capital Movements
International Policy Coordination and Transmission
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: General, International, or Comparative
Economic History: Financial Markets and Institutions: General, International, or Comparative
- Thema
-
leverage
booms
recessions
financial crises
business cycles
local projections
Finanzkrise
Private Verschuldung
Öffentliche Schulden
Konjunktur
Industrieländer
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Jordà, Òscar
Schularick, Moritz
Taylor, Alan M.
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Jordà, Òscar
- Schularick, Moritz
- Taylor, Alan M.
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2013
Ähnliche Objekte (12)
Bank lending procyclicality and credit quality during financial crises
Bank lending procyclicality and credit quality during financial crises
Traditional banks, shadow banks and the US credit boom: Credit origination versus financing
Credit Market Competition and Liquidity Crises
Credit market competition and liquidity crises
Bank versus non-bank credit in the United States, Europe and China
Credit spreads, financial crises, and macroprudential policy
Risk mitigating versus risk shifting: Evidence from banks security trading in crises
Banks, banking, and crises
Friend or Foe? Crowdfunding Versus Credit when Banks are Stressed
Friend or Foe? Crowdfunding Versus Credit when Banks are Stressed
Understanding Financial Crises: Causes, Consequences, and Policy Responses
Bank lending procyclicality and credit quality during financial crises
Bank lending procyclicality and credit quality during financial crises
Traditional banks, shadow banks and the US credit boom: Credit origination versus financing
Credit Market Competition and Liquidity Crises
Credit market competition and liquidity crises
Bank versus non-bank credit in the United States, Europe and China
Credit spreads, financial crises, and macroprudential policy
Risk mitigating versus risk shifting: Evidence from banks security trading in crises
Banks, banking, and crises
Friend or Foe? Crowdfunding Versus Credit when Banks are Stressed
Friend or Foe? Crowdfunding Versus Credit when Banks are Stressed
Understanding Financial Crises: Causes, Consequences, and Policy Responses
Bank lending procyclicality and credit quality during financial crises
Bank lending procyclicality and credit quality during financial crises
Traditional banks, shadow banks and the US credit boom: Credit origination versus financing
Credit Market Competition and Liquidity Crises
Credit market competition and liquidity crises
Bank versus non-bank credit in the United States, Europe and China
Credit spreads, financial crises, and macroprudential policy
Risk mitigating versus risk shifting: Evidence from banks security trading in crises
Banks, banking, and crises
Friend or Foe? Crowdfunding Versus Credit when Banks are Stressed
Friend or Foe? Crowdfunding Versus Credit when Banks are Stressed