Working Paper: NBER ID: w12993
Authors: Michael D. Bordo
Abstract: This lecture revisits the evidence on the incidence and severity of different varieties of financial crises within the context of globalization then ( pre-1914) and now ( 1980 to the present). I then discuss the determinants of emerging market crises from the perspective of the recent balance sheet approach. This approach puts at center stage the importance of financial development. I then peel the onion back further and consider the "deep" institutional determinants of financial development and their relationship to financial stability. I conclude by conjecturing about the ways countries learn from their financial crises to improve their institutions and grow up to financial stability.
Keywords: No keywords provided
JEL Codes: N00; N2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| financial crises (G01) | improved institutional frameworks (O17) |
| financial development (O16) | fewer financial crises (G01) |
| sound institutions (D02) | resilience to financial crises (F65) |