Title

Can Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses

Andrew Feltenstein and Céline Rochon

Can Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses

A study of the impact of labor market restructuring and foreign direct investment on the banking sector, using a dynamic general equilibrium model with a financial sector. Numerical simulations are performed using stylized Chinese data, and bank failures are generated through increases in the...
Topics: 
Economy
Keywords: 
Banking