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The Effects of Crisis Management Measures on the Economy: Evidence from Past Crises

Author

Listed:
  • Jonas Cekal

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)

  • Adam Gersl

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)

Abstract

This paper deals with the effectiveness of crisis management measures used by national authorities to tackle a systemic banking crisis. Quarterly panel dataset of 69 countries over the time span 1970 to 2023 was created and a total of 54 crisis periods were examined based on the identification of various sources. The estimation employs two-way fixed effects model in difference-in-differences design to examine the effect of individual policies on the economy as represented by real GDP, house prices and credit. We find a significant effect of bank nationalizations and deposit freezes on the increases of real GDP growth and nominal house prices growth. On the contrary, we were not able to draw any conclusions from the analysis of the remaining measures such as liquidity support, bank recapitalizations or asset purchases.

Suggested Citation

  • Jonas Cekal & Adam Gersl, 2025. "The Effects of Crisis Management Measures on the Economy: Evidence from Past Crises," Working Papers IES 2025/10, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jun 2025.
    • Handle: RePEc:fau:wpaper:wp2025_10
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    File URL: https://ies.fsv.cuni.cz/en/effects-crisis-management-measures-economy-evidence-past-crises
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    More about this item

    Keywords

    State financial support; Bailout; Economic growth; Financial stability; Systemic banking crisis;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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