The ‘fear factor’: Personal experience and risk aversion in times of crisis

Peter Koudijs, Hans-Joachim Voth, 12 April 2014

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To paraphrase Larry Summers, some people are scared – just look around. The crisis of 2007–08 took a toll on a lot of people, investors included. What seemed to be a new age of steady, moderately high growth and stable equity returns suddenly turned into the biggest economic crisis since the 1930s:

Topics: Economic history, Financial markets
Tags: behaviour, crisis, financial markets, lending, risk aversion

Foreign bank lending during the Crisis: Evidence on branches vs subsidiaries

John Hooley, Glenn Hoggarth, Yevgeniya Korniyenko, 14 February 2014

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Foreign banks contribute potentially large longer-term benefits to their host economies (see, for example, Claessens and van Horen 2012). But the experience of the recent crisis has revealed that their lending can be more cyclical than that of domestic banks (Cetorelli and Goldberg 2011, Claessens and van Horen 2012, De Haas and Lelyveld 2011).

Topics: Global crisis, International finance
Tags: foreign banks, foreign subsidiaries, global crisis, lending

Dark side of housing-price appreciation

Indraneel Chakraborty, Itay Goldstein, Andrew MacKinlay, 25 November 2013

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Policymakers around the world often worry about decreases in real-estate prices and other asset prices, and take measures to prevent them. For example, in the aftermath of the financial crisis, the Federal Reserve has engaged in large-scale asset purchases – especially of mortgage-backed assets – to support the housing market and, in turn, the overall economy.

Topics: Financial markets, Monetary policy
Tags: asset prices, banks, Federal Reserve, housing, investment, lending, real estate

From sovereign turmoil to private-sector woes: Italian sovereign spreads and their pass-through to bank lending conditions

Edda Zoli, 15 June 2013

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Volatility in the Italian sovereign-debt market intensified in the summer of 2011, with ten-year government bond spreads climbing from below 200 basis points in June to over 500 at end-2011 and falling again in July 2012. In January of this year, they fell further to below 300 basis points.

Topics: Europe's nations and regions
Tags: banking, Italy, lending, sovereign debt

Who gets the credit? And does it matter? Household vs. firm lending across countries

Thorsten Beck, Berrak Buyukkarabacak, Felix Rioja, Neven Valev, 9 July 2009

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An extensive literature has documented the positive effect of financial development on economic growth and poverty reduction (Rajan and Zingales 1998; Beck, Levine and Loayza, 200

Topics: Development, Financial markets
Tags: credit constraints, enterprise credit, financial development, household credit, lending

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