'The Political Aftermath of Financial Crises: Going to Extremes'

At Vox EU:

The political aftermath of financial crises: Going to extremes, by Manuel Funke, Moritz Schularick, and Christoph Trebesch: Summary Recent events in Europe provide ample evidence that the political aftershocks of financial crises can be severe. This column uses a new dataset that covers elections and crises in 20 advanced economies going back to 1870 to systematically study the political aftermath of financial crises. Far-right parties are the biggest beneficiaries of financial crises, while the fractionalization of parliaments complicates post-crisis governance. These effects are not observed following normal recessions or severe non-financial macroeconomic shocks.