02116cas a2200277 a 4500 AALejournalIMF006135 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451873924 1018-5941 BD-DhAAL BD-DhAAL Abiad, Abdul. What's the Damage? : Medium-term Output Dynamics After Banking Crises / Abdul Abiad, Petya Koeva Brooks, Irina Tytell, Daniel Leigh. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (37 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 investigates the medium-term behavior of output following banking crises, and its association with pre- and post-crisis conditions and policies. We find that output tends to be depressed substantially following banking crises, with no rebound to the precrisis trend. However, growth does eventually tend to return to its precrisis rate, with substantial crosscountry variation in outcomes. The depressed path of output typically results from reductions of roughly equal proportions in the employment rate, the capital-to-labor ratio, and total factor productivity. Initial conditions that are strongly associated with medium-run output losses include the short-run change in output, the occurrence of a joint banking-and-currency crisis, and a high precrisis level of investment. Short-run fiscal and monetary stimulus is associated with smaller medium-run deviations of output and growth from the precrisis trend. Mode of access: Internet Koeva Brooks, Petya. Leigh, Daniel. Tytell, Irina. IMF Working Papers; Working Paper ; No. 2009/245 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/245/001.2009.issue-245-en.xml IMF e-Library