This paper examines the long-run (steady-state) relationship between levels of educational human capital and levels of income for the 15 major states of India between 1965 and 1992. The relationship is estimated using the Pooled Mean Groups (PMG) technique; which produces common long-run...

Purpose – In recent years, the financial system has been changing rapidly. At the same time, macroeconomic volatility has fallen in developed countries. The purpose of this paper is to examine how these developments may have affected the nature of systemic crises. The paper also aims to...

We use financial information on banks from Asia, Europe, North America and Oceania to examine the role of wholesale funding on the transmission of financial crises to bank lending, as well as to study the response of financial institutions in different regions during the crises. We consider the...

This paper develops a network model of interbank lending in which unsecured claims, repo activity and shocks to the haircuts applied to collateral assume centre stage. We show how systemic liquidity crises of the kind associated with the interbank market collapse of 2007–2008 can arise within...

Purpose – In recent years, the financial system has been changing rapidly. At the same time, macroeconomic volatility has fallen in developed countries. The purpose of this paper is to examine how these developments may have affected the nature of systemic crises. The paper also aims to...

The breakdown of short-term funding markets was a key feature of the global financial crisis of 2007/2008. Drawing on ideas from global games and network growth, we show how network topology interacts with the funding structure of financial institutions to determine system-wide crises. Bad news...

The recent financial crisis has brought the issue of banking system ‘stress tests’ to the fore. This paper describes recent progress in the area of systemic risk modelling and measurement and discusses how the results of such analyses are helping shape the practical framework for...