Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

There is a vast body of literature estimating the impact of financial development on economic growth, inequality, and economic stability. A typical empirical study approximates financial development with either one of two measures of financial depth – the ratio of private credit to GDP or stock market capitalization to GDP. However, these indicators do not take into account the complex multidimensional nature of financial development. The contribution of this paper is to create nine indices that summarize how developed financial institutions and financial markets are in terms of their depth, access, and efficiency. These indices are then aggregated into an overall index of financial development. With the coverage of 183 countries on annual frequency between 1980 and 2013, the database should offer a useful analytical tool for researchers and policy makers.

Economic indicators --- Financial institutions --- Capital market --- Economic development --- Development, Economic --- Economic growth --- Growth, Economic --- Economic policy --- Economics --- Statics and dynamics (Social sciences) --- Development economics --- Resource curse --- Capital markets --- Market, Capital --- Finance --- Loans --- Money market --- Securities --- Crowding out (Economics) --- Efficient market theory --- Financial intermediaries --- Lending institutions --- Associations, institutions, etc. --- Business indicators --- Indicators, Business --- Indicators, Economic --- Leading indicators --- Economic history --- Quality of life --- Economic forecasting --- Index numbers (Economics) --- Social indicators --- E-books --- Finance: General --- Investments: General --- General Financial Markets: General (includes Measurement and Data) --- Financial Institutions and Services: General --- Economic Development: Financial Markets --- Saving and Capital Investment --- Corporate Finance and Governance --- Index Numbers and Aggregation --- leading indicators --- Methodology for Collecting, Estimating, and Organizing Macroeconomic Data --- Data Access --- Financial Markets and the Macroeconomy --- Investment & securities --- Financial sector development --- Stock markets --- Market capitalization --- Securities markets --- Financial markets --- Financial services industry --- Stock exchanges --- Financial instruments --- Trinidad and Tobago

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Can the upturns and downturns in financial variables serve as early warning indicators of banking crises? Using data from 59 advanced and emerging economies, we show that financial overheating can be detected in real time. Equity prices and output gap are the best leading indicators in advanced markets; in emerging markets, these are equity and property prices and credit gap. Moreover, aggregating this information flags financial crisis many years before the crisis. Lastly, we find that the length of financial cycles is of medium-term frequency, calling into question the longer frequency widely used in the estimation of countercyclical capital buffers.

Macroeconomics --- Economics: General --- International Economics --- Banks and Banking --- Money and Monetary Policy --- Real Estate --- Financial Risk Management --- Foreign Exchange --- Informal Economy --- Underground Econom --- Business Fluctuations --- Cycles --- Financial Crises --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Nonagricultural and Nonresidential Real Estate Markets --- Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) --- Economic & financial crises & disasters --- Economics of specific sectors --- Monetary economics --- Property & real estate --- Economic growth --- Financial cycles --- Financial sector policy and analysis --- Banking crises --- Financial crises --- Credit --- Money --- Land prices --- Prices --- Business cycles --- Currency crises --- Informal sector --- Economics --- Housing --- Crisis management --- United States

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Can the upturns and downturns in financial variables serve as early warning indicators of banking crises? Using data from 59 advanced and emerging economies, we show that financial overheating can be detected in real time. Equity prices and output gap are the best leading indicators in advanced markets; in emerging markets, these are equity and property prices and credit gap. Moreover, aggregating this information flags financial crisis many years before the crisis. Lastly, we find that the length of financial cycles is of medium-term frequency, calling into question the longer frequency widely used in the estimation of countercyclical capital buffers.

United States --- Macroeconomics --- Economics: General --- International Economics --- Banks and Banking --- Money and Monetary Policy --- Real Estate --- Financial Risk Management --- Foreign Exchange --- Informal Economy --- Underground Econom --- Business Fluctuations --- Cycles --- Financial Crises --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Nonagricultural and Nonresidential Real Estate Markets --- Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) --- Economic & financial crises & disasters --- Economics of specific sectors --- Monetary economics --- Property & real estate --- Economic growth --- Financial cycles --- Financial sector policy and analysis --- Banking crises --- Financial crises --- Credit --- Money --- Land prices --- Prices --- Business cycles --- Currency crises --- Informal sector --- Economics --- Housing --- Crisis management

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

While South Asia has gone a long way in diversifying their economies, there is substantial scope to do more. Some countries – India, Nepal, and Sri Lanka – can build on their existing production capabilities; others – Bangladesh, Bhutan, and the Maldives – would need to undertake a more concerted push. We identify key policies from a large set of potential determinants that explain the variation in export diversification and complexity across 189 countries from 1962 to 2018. Our analysis suggests that South Asia needs to invest in infrastructure, education, and R&D, facilitate bank credit to productive companies, and open to trade in order to diversify and move up the value chains. Given the COVID-19 pandemic, investing in digital technologies as part of the infrastructure push and improving education are of even greater importance to facilitate the ability to work remotely and assist resource reallocation away from the less viable sectors.

Macroeconomics --- Economics: General --- Exports and Imports --- Infrastructure --- Globalization: Economic Development --- Regulation and Industrial Policy: General --- Industrialization --- Manufacturing and Service Industries --- Choice of Technology --- Economywide Country Studies: Europe --- Trade: General --- Economic Development: General --- Investment --- Capital --- Intangible Capital --- Capacity --- Aggregate Factor Income Distribution --- Economic & financial crises & disasters --- Economics of specific sectors --- International economics --- Economic growth --- Export diversification --- International trade --- Exports --- National accounts --- Income --- Currency crises --- Informal sector --- Economics --- Saving and investment --- India

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The Global Financial Crisis has reopened discussions on the role of the monetary policy in preserving financial stability. Determining whether monetary policy affects financial variables domestically—especially compared to the effects of macroprudential policies— and across borders, is crucial in this context. This paper looks into these issues using U.S. exogenous monetary policy shocks and macroprudential policy measures. Estimates indicate that monetary policy shocks have significant and persistent effects on financial conditions and can attenuate long-term financial instability. In contrast, the impact of macroprudential policy measures is generally more immediate but shorter-lasting. Also, while an exogenous increase in U.S. monetary policy rates tends to reduce credit and house prices in other countries—with the effects varying with country-specific characteristics—an increase driven by improved U.S. economic conditions tends to have the opposite effect. Finally, we do not find evidence of cross-border spillover effects associated with U.S. macroprudential policies.

Finance: General --- Macroeconomics --- Money and Monetary Policy --- Monetary Policy --- Central Banks and Their Policies --- Business Fluctuations --- Cycles --- Financial Crises --- Financial Markets and the Macroeconomy --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- General Financial Markets: Government Policy and Regulation --- Monetary economics --- Finance --- Macroprudential policy instruments --- Macroprudential policy --- Credit --- Financial sector stability --- Bank credit --- Financial sector policy and analysis --- Money --- Economic policy --- Financial services industry --- United States