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339

American Economic Review: Papers & Proceedings 2008, 98:2, 339344

ttp://www.aeaweb.org/articles.pp?doi=10.1257/aer.98.2.339

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Is the 2007 US Sub-Prime Financial Crisis So Different?

An International Historical Comparison

By Carmen M. Reinhart and Kenneth S. Rogoff*

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I. Postwar Bank-Centered Financial Crises:The Data

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* R: Scl Publc Plcy Dp Eccs, Uvsy Myl, 4105 V MucHll, Cll Pk, MD 20742 (-l: [email protected]); R: Eccs Dp, Hv Uv-sy, Lu C, Cb, MA 02138-3001 (-l:

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MAY 2008340 AEA PAPERS AND PROCEEDINGS

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Te Big Five Crises: Sp (1977),Nwy (1987), Fl (1991), Sw(1991), Jp (1992), w s- y s pss.

Oter Banking and Financial Crises:Ausl (1989), C (1983), Dk(1987), Fc (1994), Gy (1977),Gc (1991), Icl (1985), Ily (1990),Nw Zl (1987), U K(1974, 1991, 1995), U Ss(1984).

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II. Comparisons

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VOL. 98 NO. 2 341IS ThE US SUB-PRIME CRISIS DIFFERENT?

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Figure 1. Real Housing Prices and Banking Crises

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Figure 2. Real Equity Prices and Banking Crises

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III. Conclusions

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Figure 3. Current Account Balance/GDP on the Eve of Banking Crises

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VOL. 98 NO. 2 343IS ThE US SUB-PRIME CRISIS DIFFERENT?

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REFERENCES

Caprio, Gerard, Daniela Klingebiel, Luc Laeven,

and Guillermo Noguera. 2005. Bk C-ss Dbs. I Systemic Financial Crises,. Pck H Luc Lv, 34160.Cb: Cb Uvsy Pss.

Dornbusch, Rudiger. 1986.Dollars, Debts, andDefcits. Cb, MA: MIT Pss.

Kaminsky, Graciela L., and Carmen M. Rein-

hart. 1999. T Tw Css: T Cuss Bk Blc--Pys Pbls.American Economic Review, 89(3): 473500.

Reinhart, Carmen M., and Kenneth S. Rogoff.

Fc.Tis Time is Dierent: Six Centu-ries o Financial Folly.

Shiller, Robert. 2005.Irrational Exuberance. 2. Pc, NJ: Pc Uvsy Pss.

Sutton, Gregory D. 2002. Expl Cs Hus Pcs.BIS Quarterly Review: 4655.

rogoff aer 2008

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