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Anatomy of Financial Crises

Financial crises have plagued economies worldwide for decades and have been the subject of much analysis, partly in the hopes of averting their devastating effects in the future. What are the four main types of financial crises, and what have we learned so far about what contributes to their creation and the measures taken to combat them? ....

United States , United Kingdom , University Of Chicago , World Bank , District Of Columbia , City Of , Abuja Federal Capital Territory , Christophers Adam , Daniela Klingebiel , Steven Radelet , Gurudeo Anand Tularam , Olutomilola Makinde , Peterb Kenen , Guillermoa Calvo , Peterm Garber , Raymond Chaudron , M Ayhan Kose , R Glenn Hubbard , Ernesto Talv , Georgea Akerlof , Boris Pleskovic , Oluremi Ogun , Stijn Claessens , Alejandro Izquierdo , Frederics Mishkin , Paulm Romer ,

Commodity prices and banking crises | VOX, CEPR Policy Portal


Stephanie Schmitt-Grohe, Martín Uribe
After a period of widespread financial instability in the 1980s and 1990s, mostly concentrated among commodity exporters, only a handful of developing countries have been hit by systemic banking crises over the past two decades. Several factors have contributed to this state of affairs, including an extended period of sustained economic growth, financial deepening, and favourable external conditions, most notably a protracted period of stable and high commodity prices. Figure 1 shows that banking crises in low-income countries are clustered between the late 1980s and the early 1990s, when commodity prices declined and volatility increased, especially at the high end of the distribution. By contrast, crises have been almost absent in the 2000s, in correspondence with the commodity super-cycle. But since ‘graduation’ from banking crises has so far proven elusive (Reinhart et al. 2010), when the commodity super-cycle came to an end in th ....

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