Banking crises typically result in L-shaped recessions with deflationary consequences, but can, on occasion, trigger currency crises that deliver high-inflation episodes Systemic banking crises (i.e., those occurring simultaneously across countries) typically result in more severe impacts on economic growth than idiosyncratic (i.e., isolated) episodes Two systemic banking crises have occurred over the past 25 years — exposure to these explains a large proportion of why Europe and Asia appear to suffer more during banking crises Systemic risks are a product…