The Text Points Out That There Is an Inverse Relationship

question 26

Essay

The text points out that there is an inverse relationship between the fiscal cost of a bank crisis and real GDP growth.What are some of the reason that can explain this inverse relationship?

---

Definitions:

Political Risk

The potential for losses or other negative impacts to a business resulting from political changes or instability within a country.

Governmental Attitudes

The stance or policy approach adopted by a government towards a particular issue or sector.

Bureaucratic Risk

involves the uncertainties and slowdowns that can occur within an organization due to rigid procedures, policies, and hierarchies.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.