This paper studies the direct impact of households' debt on consumption over the business cycle. We use household-level panel data for Spain, and focus on a interesting period of analysis, 2002-2017, characterized by large variations in leverage, consumption, and asset prices. We find that debt...

Die Coronapandemie hat sichtbare Spuren bei der Liquiditätssituation und den Eigenkapitalquotenmittelständischer Unternehmen hinterlassen. Vor dem Hintergrund einer guten Ausgangslageund insgesamt einer Stabilisierung der Lage im Krisenverlauf ist eine Überschuldung des Unternehmenssektorsin...

We investigate the impacts of geopolitical risks (GPRs) on financial stress (FS) in major emerging economies from 1985 to 2019. Applying a recently developed panel quantile estimation method, we show that GPRs pose serious risks to the stability of the financial condition in emerging economies....

The aim of this seminal paper is the empirical analysis of geopolitical risk, economic policy uncertainty, financial stress, and infectious diseases' impact on financial institutions' stability at the country level. The quantitative research approach followed by regression analysis is employed...

Purpose - The Purpose - of the paper is to examine the differences in the impact of financial stress in advanced and emerging economies. Design/methodology/approach The authors employ a panel vector autoregression model (PVAR) for a comparative analysis of the relationship between financial...

Over-borrowing and financial stress has recently become an important issue in macroeconomic and policy discussions in the US as well as in the EU. In this paper we study two regimes of financial stress. In a regime of high financial stress, stress shocks can have large and persistent impacts on...

We analyze the international transmission of financial stress and its effects on economic activity. We construct country specific monthly financial stress indexes (FSI) using dynamic factor models from 1970 until 2012 for 20 countries. We show that there is a strong co-movement of the FSI during...

We introduce a dynamic banking-macro model, which abstains from conventional mean-reversion assumptions and in which - similar to Brunnermeier and Sannikov (2010) - adverse asset-price movements and their impact on risk premia and credit spreads can induce instabilities in the banking sector. To...

While knowing there is a financial distress when you see it might be true, it is not particularly helpful. Indeed, central banks have an interest in understanding more systematically how their communication affects the markets, not least in order to avoid unnecessary volatility; the markets for...