Financial Stability and Economic Growth

  • Santiago Carbó-Valverde
  • Luis Pedauga Sánchez
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


The relationship between the development of a country’s financial sector and its rate of economic growth has been studied in depth. However, few studies have tried to explain how the link between financial development and economic growth works during periods of financial instability. Bauducco, Buliř, and Čihák (2008), Hakkio and Keeton (2009) and Carlson et al. (2009) have recently studied the effects of financial stress on economy performance. They have pointed out that there are three different channels through which financial instability can affect the relationship between finance development and economic growth.


Economic Growth Gross Domestic Product International Monetary Fund Financial Development Financial Stability 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Santiago Carbó-Valverde and Luis Pedauga Sánchez 2013

Authors and Affiliations

  • Santiago Carbó-Valverde
  • Luis Pedauga Sánchez

There are no affiliations available

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