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Daily Archives: April 26, 2013

BIS: Financial sector ups and downs and the real sector in the open economy

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Financial sector ups and downs and the real sector in the open economy: Up by the stairs, down by the parachute by Joshua Aizenman, Brian Pinto and Vladyslav Sushko. Working Papers No 411, April 2013

  • “We examine how financial expansion and contraction cycles affect the broader economy through their impact on real economic sectors in a panel of countries over 1960-2005. Periods of accelerated growth of the financial sector are more likely to be followed by abrupt financial contractions than are periods of slower financial sector growth. Sharp fluctuations in the financial sector have strongly asymmetric effects, with the majority of real sectors adversely affected by contractions, but not helped by expansions. The adverse effects of financial contractions are transmitted almost exclusively through the financial openness channel, with precautionary foreign exchange reserve holdings serving as a key buffer.”
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    • VA60 Data Spotlight March 13, 2013 Cigarette Smoking Decreases among All Adults Except Those Aged 26 to 34

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    Cigarette Smoking Decreases among All Adults Except Those Aged 26 to 34 – Substance Abuse & Mental Health Services Administration. March 13, 2013 “Smoking is a serious public health concern that continues to be the primary cause of preventable illness and death in the United States. Policy efforts such as increased cigarette taxes and graphic… Continue Reading