Banks with lower capital ratios, a higher share of run-prone uninsured depositors, and whose portfolios were more exposed to interest rate risk, were more likely to reclassify securities to held-to-maturity status in 2021 and 2022—just as the value of these securities were starting to decline—allowing banks to “hide” potential losses.

Multinational firms transmit shocks across countries to their international affiliates through their internal capital markets; those affiliates support their parents through internal lending, become financially constrained themselves, and experience lower real growth.

Inventors are increasingly concentrated in large incumbent firms, less likely to work for young firms, and less likely to become entrepreneurs; also, an inventor hired by an incumbent earns 12.6% more than an inventor hired by a young firm, but their innovative output declines by 6-11%.

During a period of “bad” inflation, stock and bond prices fall together; during “good” inflation, stock prices rise while bonds fall. The former is owed to supply shocks and often persistent, while the latter is owed to demand shocks and typically transitory.

In countries with less efficient capital markets, increases in consumer sentiment lead to increased economic growth and total factor productivity, while in countries with more efficient capital markets, increases in sentiment increase economic activity only temporarily and without affecting productivity.

Travelers to North Africa, the Middle East, India, the Balkans, and countries throughout Asia have likely encountered a bazaar, where sellers gather to form an often large, tightly grouped assortment of small shops and stalls that offer food, clothing, household wares, and other items for sale. For tourists, these shopping experiences, with their vibrant display of local products, offer a unique method of experiencing a local culture, while also allowing for the purchase of souvenirs.

Like water, financing tends toward the path of least resistance. Likewise, when regulations are erected to restrict or otherwise guide the flow of financing, money often finds its way through more amenable pathways. Case in point: When the Great Financial Crisis of 2007-09 triggered tightening banking regulation to buttress the financial system against future shocks, corporate lending looked to sources outside the banking sector.

Relative to white borrowers, mortgage lending to minority borrowers significantly increases following the resolution of enforcement decisions and orders (EDOs); this effect increases with the strictness of bank supervision and severity of the EDO.