  We study cross-country GDP losses due to financial crises in terms of
frequency (number of loss events per period) and severity (loss per
occurrence). We perform the Loss Distribution Approach (LDA) to estimate a
multi-country aggregate GDP loss probability density function and the
percentiles associated to extreme events due to financial crises.
  We find that output losses arising from financial crises are strongly
heterogeneous and that currency crises lead to smaller output losses than debt
and banking crises.
  Extreme global financial crises episodes, occurring with a one percent
probability every five years, lead to losses between 2.95% and 4.54% of world
GDP.
