From Finance is Not the Economy by Dirk Bezemer and Michael Hudson:
Mathias Drehman and Mikael Juselius (2015) report that debt-service ratios are an accurate early warning signal of impending systemic banking crises, and strongly related to the size of the subsequent output losses.
1 comment:
And I have been saying that debt-service ratios also happen to be an accurate early warning signal of economic improvement.
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