Banking crises and political survival over the long run: why great expectations matter
Chwieroth, J.
& Walter, A.
(2013).
Banking crises and political survival over the long run: why great expectations matter.
& Walter, A.
(2013).
Banking crises and political survival over the long run: why great expectations matter.
The economic consequences of financial crises have been systematically explored. Their political consequences haven’t. This column argues that without paying attention to politics, crises will remain poorly understood. After all, politics shapes policy choices, market sentiment and, ultimately, economic outcomes. Evidence from the effects of banking crises over the past century show that crises have a dramatic impact on the survival prospects of governments.