Thursday, August 25, 2016

Bezemer and Hudson, Quotable & Relevant


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:

The Arthurian said...

And I have been saying that debt-service ratios also happen to be an accurate early warning signal of economic improvement.