HKS Affiliated Authors


Financial Crises, Development, and Growth: A Long-term Perspective. Carmen M. Reinhart, April 24, 2015, Paper. "Observed over long periods, the upward path of the output of most economies occasionally takes jagged steps down. More often than not, these events are associated with a variety of crises, including systemic banking stresses, exchange rate crashes, a burst of inflation, and a restructuring or default on sovereign debt. Using a large panel of countries over a long period, we document that crises are typically associated with lower medium-term growth. That may be a direct causal channel, a reverse channel, or the influence of some other factors..." Link