working paper series mark joy marek rusnak banking and currency crises kateina smidkova and boek vasiek differential diagnostics for developed countries no 1810 june 2015 note this working paper should ...
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...Working paper series mark joy marek rusnak banking and currency crises kateina smidkova boek vasiek differential diagnostics for developed countries no june note this should not be reported as representing the views of european central bank ecb expressed are those authors do necessarily reflect abstract we identify a set rules thumb that characterise economic financial structural conditions preceding onset in advanced economies over use classification regression tree methodology cart its random forest rf extension which permits detection key variables driving binary crisis outcomes allows interactions among determines critical tipping points distinguish between basic country characteristics international developments find more varied than they similar low net interest rate spreads sector shallow or inverted yield curve their most important forerunners short term whereas longer it is high house price inflation domestic rates coupled with overvalued exchange powerful predictors both rele...