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dc.contributor.authorSmith, Andrew
dc.contributor.editorNguyen, Tom
dc.date.accessioned2020-01-16T08:02:58Z
dc.date.available2020-01-16T08:02:58Z
dc.date.issued2012
dc.identifier.issn1837-7750
dc.identifier.otherRePEc:gri:epaper:economics:201206
dc.identifier.urihttp://hdl.handle.net/10072/390350
dc.description.abstractFractional Reserve Banking - the system of banking where depositors place their money at a bank for, ostensibly, a short time, but the bank lends it out for periods of perhaps up to 30 years - has been with us since, at least, London goldsmiths developed the practice in the 17th century. Despite its modern guise, and layer upon layer of regulatory oversight, Fractional Reserve Banking can still cause great economic harm, not least because of the fundamental weakness in its premise: the false expectation that all depositors are able to withdraw all their money at the same time, if they so desire. This paper begins by outlining the development of the young science of measuring the economic impact of financial crises. It then turns to measuring the extent to which banking crises have impacted, and continue to impact, on global outputs. Using the Laeven and Valencia (2010) database of more than 140 banking crises since the end of the Bretton Woods era, I determine that the lingering impact of banking crises has been to collectively lower global GDP by 6.5% pa, which is more than the size of the Japanese economy (measured in PPP).
dc.format.extent33 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto33
dc.subject.keywordsD12 - Consumer Economics: Empirical Analysis
dc.subject.keywordsD31 - Personal Income, Wealth, and Their Distributions
dc.subject.keywordsI32 - Measurement and Analysis of Poverty
dc.subject.keywordsFractional reserve banking
dc.subject.keywordsfinancial crises
dc.subject.keywordscosts of banking crises
dc.title2012-06: Measuring the macroeconomic costs of banking crises (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicEconomics and Business Statistics
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2012
gro.hasfulltextFull Text
gro.griffith.authorSmith, Andrew D.


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