Fluctuations in financial markets have greatly influenced real economy around the world over the past two decades. The 2008–09 global crisis is the latest in a long list of economic events shaped by cycles in financial markets. Its severity has instantly made the study of financial cycles a...

The 2008–09 global crisis raised debates concerning the determinants of financial vulnerability. Among these, bad loans have been identified as significantly influencing financial imbalances. After a decade in which borrowing has constantly grown mainly because of the deregulation of financial...