Coordinating in financial crises

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dc.contributor.authorMachado, Caio
dc.date.accessioned2025-01-20T16:12:05Z
dc.date.available2025-01-20T16:12:05Z
dc.date.issued2024
dc.description.abstractWhy do some financial crises lead to macroeconomic disasters, while others barely affect the real economy? This paper proposes a model to study unusually deep financial crises. Deep crises arise from the interplay of demand-driven coordination failures on the productive sector and weak banks' balance sheets. There is a dynamic feedback between banks' balance sheets and coordination. Coordination failures happen when banks suffer large losses and substantially reduce asset prices and welfare, even if the economy is in good times and they rarely happen. Financial crises that start from similar initial shocks can feature very heterogeneous real effects.
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.red.2024.101236
dc.identifier.eissn1096-6099
dc.identifier.issn1094-2025
dc.identifier.urihttps://doi.org/10.1016/j.red.2024.101236
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/90312
dc.identifier.wosidWOS:001279150100001
dc.language.isoen
dc.revistaReview of economic dynamics
dc.rightsacceso restringido
dc.subjectCoordination failures
dc.subjectFinancial frictions
dc.subjectFinancial crises
dc.subject.ods17 Partnerships for the Goals
dc.subject.ods08 Decent Work and Economic Growth
dc.subject.odspa17 Alianzas para lograr los objetivos
dc.subject.odspa08 Trabajo decente y crecimiento económico
dc.titleCoordinating in financial crises
dc.typeartículo
dc.volumen54
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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