Archive for February 3rd, 2009

History of banking crisis in India?

February 3, 2009

Reinhart and Rogoff have written this masterly paper on banking crises. This paper has been on the pending paper list for a while. Another paper which I really liked on banking crisis was this one but it covers a much shorter time series- 1970-2007.

The paper is so informative that if I start to review it here it would take the entire paper. One key lesson is countries still have to figure out limiting banking crisis which are quite common. This story is same across economies – developed or developing. All developed econs barring Portugal have experienced a banking crisis since 1945! They also point to their paper on debt crisis showing advanced econs have actually graduated out of debt crisis (this time could be different though) . It also has an interesting finding of costs of banking crisis. It says that on average after 3 years, government debt rises by 86%. And the main costs are not bailout costs  as most point, but because of tax reductions and rise in govt expenditure.

What  interested me more is to see some literature on the history of banking crisis in India.

(more…)

Assorted Links

February 3, 2009

1. MR points 20 mn job losses in China

2. Krugman says we can have depression as economists haven’t learnt from the great depression

3. WSJ Blog points Fisher (Dallas Fed Chief) support for fiscal stimulus

4. Mankiw on CEA estimates for job creation

5. Rodrik points to international regulatory reform

6. CBB points closing business is more efficient in common law countries

7. CTB points to a new paper that analyses disclosures by politicians


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