The profound influence of the 2008 financial crisis has renewed interests in the financial instability hypothesis of Minsky, which attributes financial crisis to credit-intensive booms. This paper investigates the relationship between credit growth and the probability of a banking crisis based...

This study investigates the cross-country impact of U.S. equity market skewness risk. We find that a large decrease in the U.S. market skewness significantly predicts high future returns on international equity markets. The predictability remains significant after controlling for a set of U.S....