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Financial Development and Economic Volatility:A Unified Explanation

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  • Yi Wen

    (FRB St. Louis and Tsinghua University)

  • Pengfei Wang

    (Hong Kong University of Science and Technology)

Abstract

have only limited) access to external funds

Suggested Citation

  • Yi Wen & Pengfei Wang, 2010. "Financial Development and Economic Volatility:A Unified Explanation," 2010 Meeting Papers 66, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:66
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    4. John Y. Campbell & Martin Lettau & Burton G. Malkiel & Yexiao Xu, 2001. "Have Individual Stocks Become More Volatile? An Empirical Exploration of Idiosyncratic Risk," Journal of Finance, American Finance Association, vol. 56(1), pages 1-43, February.
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    10. Dynan, Karen E. & Elmendorf, Douglas W. & Sichel, Daniel E., 2006. "Can financial innovation help to explain the reduced volatility of economic activity?," Journal of Monetary Economics, Elsevier, vol. 53(1), pages 123-150, January.
    11. Comin, Diego & Mulani, Sunil, 2009. "A theory of growth and volatility at the aggregate and firm level," Journal of Monetary Economics, Elsevier, vol. 56(8), pages 1023-1042, November.
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    Cited by:

    1. Jeremy Greenwood & Juan M. Sanchez & Cheng Wang, 2010. "Financing Development: The Role of Information Costs," American Economic Review, American Economic Association, vol. 100(4), pages 1875-1891, September.
    2. Yang Jiao & Yi Wen, 2012. "Capital, finance, and trade collapse," Working Papers 2012-003, Federal Reserve Bank of St. Louis.
    3. Yi Wen, 2014. "QE: when and how should the Fed exit?," Working Papers 2014-16, Federal Reserve Bank of St. Louis.
    4. Zhu, Xiaoyang & Asimakopoulos, Stylianos & Kim, Jaebeom, 2020. "Financial development and innovation-led growth: Is too much finance better?," Journal of International Money and Finance, Elsevier, vol. 100(C).
    5. Yi Wen, 2013. "Evaluating unconventional monetary policies -why aren’t they more effective?," Working Papers 2013-028, Federal Reserve Bank of St. Louis.
    6. Pengfei Wang & Yi Wen, 2012. "Speculative Bubbles and Financial Crises," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 184-221, July.
    7. Jianjun Miao & Pengfei Wang, "undated". "Does Lumpy Investment Matter for Business Cycles?," Boston University - Department of Economics - Working Papers Series wp2010-002, Boston University - Department of Economics.
    8. Davide Furceri & Stéphanie Guichard & Elena Rusticelli, 2012. "Episodes of Large Capital Inflows, Banking and Currency Crises, and Sudden Stops," International Finance, Wiley Blackwell, vol. 15(1), pages 1-35, April.
    9. Yi Wen, 2014. "When and how to exit quantitative easing?," Review, Federal Reserve Bank of St. Louis, vol. 96(3), pages 243-265.

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