Will productivity growth suffer if firms divert a greater share of their investment towards repair and replacement of existing capital rather than towards research and development? Should this capital allocation be in public or private hands? One can accumulate a large number of one-sided assumptions and conclude that these would together depress the trend growth rate of the economy.
2 Laeven and Valencia define a banking crisis as systemic if two conditions are met: (1) significant signs of financial distress in the banking system (as indicated by significant bank runs, losses in the banking  3  On average a bank crisis costs a country 23% of its GDP, while public debt increases by around 12 percent.3 The amounts are higher for advanced economies.