01802cas a2200265 a 4500 AALejournalIMF005782 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872477 1018-5941 BD-DhAAL BD-DhAAL Lall, Subir. Financial Stress, Downturns, and Recoveries / Subir Lall, Roberto Cardarelli, Selim Elekdag. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (58 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines why some financial stress episodes lead to economic downturns. The paper identifies episodes of financial turmoil using a financial stress index (FSI), and proposes an analytical framework to assess the impact of financial stress-in particular banking distress-on the real economy. It concludes that financial turmoil characterized by banking distress is more likely to be associated with severe and protracted downturns than stress mainly in securities or foreign exchange markets. Economies with more arms-length financial systems appear to be particularly vulnerable to sharp contractions, due to the greater procyclicality of leverage in their banking systems. Mode of access: Internet Cardarelli, Roberto. Elekdag, Selim. IMF Working Papers; Working Paper ; No. 2009/100 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/100/001.2009.issue-100-en.xml IMF e-Library