absorption with GDP on the product and income side
Summary (continued)
The model...and during the “sudden stop”
Households
Banking sector
Government
Solution of...
These risks also affect the resilience of a credit
institution’s business model...from less significant institutions:
1) expectations regarding their business...
restricted ( 840 obs, 28 countries, longer time series)
• Very simple baseline model...*
9
Highlights – full sample
• Strong evidence against the random walk...
