Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249743 
Year of Publication: 
2022
Series/Report no.: 
IWH Discussion Papers No. 3/2022
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
Does financial development shield countries from the pass-through of financial shocks to real outcomes? We evaluate this question by characterising the probability density of expected GDP growth conditional on financial stability indicators in a panel of 28 countries. Our robust results unveil a non-linear nexus between financial stability and expected GDP growth, depending on countries' degree of financial development. While both domestic and global financial factors affect expected growth, the effect of global factors is moderated by financial development. This result highlights a previously unexplored channel trough which financial development can break the link between financial (in)stability and GDP growth.
Subjects: 
economic growth
financial development
financial stability
growth at risk
JEL: 
O1
G15
O16
O43
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.