The Aftermath of Financial Crises

2009/04/01 by Carmen M Reinhart, Carmen Reinhart, Kenneth S Rogoff +1 · 1,398 citations
Economics, Econometrics and Finance · #Banking stability, regulation, efficiency #Economics #Financial system #Global Financial Crisis and Policies #Keynesian economics #Macroeconomics #Monetary Policy and Economic Impact

paper · doi:10.1257/aer.99.2.466

published in American Economic Review 99(2), 466-472 (American Economic Association)

openalex publication_date 2009/04/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/02

Abstract

A year ago, we presented a historical analysis comparing the run-up to the 2007 US subprime financial crisis with the antecedents of other banking crises in advanced economies since World War II (Reinhart and Rogoff 2008a ). We showed that standard indicators for the United States, such as asset price inflation, rising lever age, large sustained current account deficits, and a slowing trajectory of economic growth, exhibited virtually all the signs of a country on the verge of a financial crisis—indeed, a severe one. In this paper, we engage in a similar com

Cited by

• The impact of high government debt on economic growth and its channels: An empirical investigation for the euro area
• When Credit Bites Back
• The Macroeconomic Impact of Climate Change: Global Versus Local Temperature
• Resilience to the Global Economic and Turkish (GEO)Political Crisis Compared
• Credit Allocation and Macroeconomic Fluctuations
• Governing Crisis
• Nickell bias in panel local projection: Financial crises are worse than you think
• Computational Socioeconomics
• The Smoot-Hawley Trade War
• Financial Intermediaries and the Macroeconomy: Evidence from a High-Frequency Identification
• Sovereign vs. corporate debt and default: More similar than you think
• Is the Cycle the Trend? Evidence From the Views of International Forecasters
• Inflation and Activity – Two Explorations and their Monetary Policy Implications
• The US Stock Market Leads the Federal Funds Rate and Treasury Bond Yields
• When Credit Bites Back: Leverage, Business Cycles, and Crises
• The 2007–2008 Global Financial Crisis, and Cross-border Mergers and Acquisitions
• Going to Extremes: Politics after Financial Crises, 1870-2014
• Banking crises, labor reforms, and unemployment
• Using critical slowing down indicators to understand economic growth rate variability and secular stagnation. [europepmc]
• A Review of Micro-Based Systemic Risk Research from Multiple Perspectives. [europepmc]
• Stress at Work: Can the Spiritual Dimension Reduce It? An Approach From the Banking Sector. [europepmc]
• Unconventional monetary policy and disaster risk: Evidence from the subprime and COVID-19 crises. [europepmc]
• Systematic and Unsystematic Determinants of Sectoral Risk Default Interconnectedness. [europepmc]
• A basic macroeconomic agent-based model for analyzing monetary regime shifts. [europepmc]
• Predicting BRICS NIFTY50 returns using XAI and S.A.F.E AI lens. [europepmc]
• The Life Cycle of Systemic Risk [europepmc]
• Economic Uncertainty, Public Debt and Non-Performing Loans in the Eurozone: Three Systemic Crises [europepmc]

Related

• The Aftermath of Financial Crises
• The Evolution of the Financial Crisis of 2007—8
• After the Fall
• Recovery from Financial Crises: Evidence from 100 Episodes
• Systemic Banking Crises Revisited