Economic globalization is increasingly challenging traditional, closedeconomy intuition about linkages between demand, supply, and employment. In some parts of the world, substantial employment growth is arising from external demand while, in other areas, there is growing concern that domestic...

This paper estimates the magnitude of key effects on the real economy from financial sector stress. We focus on the short-run feedback effect from market-based indicators of financial sector risk to the real economy through the credit channel, and estimate this effect on an economy-wide (macro)...

We bring to bear a hand-collected dataset of executive turnovers in U.S. banks to test the efficacy of market discipline in a ''laboratory setting'' by analyzing banks that are less likely to be subject to government support. Specifically, we focus on a new face of market discipline:...