Professor John Thornton

Division: Financial Studies

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Phone: +1 202 355 8637


Emeritus Professor of Global Finance

I am a Financial Stability Advisor at the US Treasury. Previously, I was Professor of Economics and Head of Bangor Business School during 2008-2016, and before that I was with the International Monetary Fund (IMF) in Washington DC, where I was, respectively, an Assistant Director in the Western Hemisphere Department, the Fiscal Affairs Department, and in the Middle East and Central Asia Department. I have also been a staff member of the Economics Department of the Organization of Economic Development and Cooperation in Paris, a Lecturer in Macroeconomics at the Institut d’Etudes Politiques de Paris, and a Vice President of Economics at Merrill Lynch International in London.


Ph.D. Economics, CASS Business School, University of London
M.Sc. Economics, Birkbeck College, University of London
B.Sc. Economics, University of Wales

Research Interests

Macroeconomic policymaking in emerging market economies; bank behaviour; monetary and fiscal policy

Recent Publications

“Credit default swaps and regulatory capital relief: evidence from European banks.” Finance Research Letters (forthcoming) (with C. di Tommaso)

“Unconventional monetary policy and the ‘currency wars’.” Finance Research Letters (forthcoming) (with C. di Tommaso)
“CEO tenure and corporate misconduct: Evidence from US banks.” Finance Research Letters (forthcoming) (with Y. Altunbaş and Y. Uymaz)

“Fiscal rules and government borrowing costs: international evidence.” Economic Inquiry 56(1), 2018 (with C. Vasilakis)

“What determines bank CDS spreads? Evidence from European and US banks.” Finance Research Letters 22(8), 2017 (with D. Drago and C. di Tommaso).

“Why Do Countries Adopt Fiscal Rules?” The Manchester School 85(1), 2017 (with Y. Altunbaş)

“The impact of fiscal rules on sovereign risk premia: International evidence.” Finance Research Letters 20(2), 2017 (with C. Vasilakis)

“Inflation targeting and the cyclicality of monetary policy.” Finance Research Letters 20(2), 2017 (with C. Vasilakis).

“Does inflation targeting reduce sovereign risk?” Finance Research Letters 18(8), 2016 (with C. Vasilakis). 

“Do better-capitalized banks lend less? Evidence from European banks.” Finance Research Letters 17(5), 2016 (with Y. Altunbaş and C. di Tommaso).

Is there a financial accelerator in European banking?” Finance Research Letters 17(5), 2016 (with Y. Altunbaş and C. di Tommaso). 

“Inflation targeting in developing economies revisited.” Finance Research Letters 16(2), 2016. 

“Tax havens and effective tax rates: an analysis of private versus public European firms.” The International Journal of Accounting 50(4), 2015 (with A. Jaafar).

“Does foreign aid reduce tax revenue?” Applied Economics 46(4), 2014

“The (small) blessing of foreign aid: further evidence of aid’s impact on democracy.” Applied Economics 46(32), 2014 (with Y. Altunbaş)

“Deposit Insurance and private capital flows: further evidence. Journal of Financial Markets, Institutions and Money 27(2), 2013 (with Y. Altunbaş)

“Does financial development reduce corruption?” Economics Letters 114(2), 2012 (with Y. Altunbaş).

“Fiscal decentralization and the quality of governance.” Public Finance Review 4(1), 2012 (with Y. Altunbaş).

“The intertemporal relation between government revenue and expenditure in the United Kingdom, 1750 to 2004.” Applied Economics 44(18), 2012 (with L. Lusinyan).

“Post-crisis financial reform: where do we stand?” Journal of Financial Regulation and Compliance 19(4), 2011 (with A. Giustiniani).

“What makes a homegrown Islamic terrorist: UK evidence,” Southern Economic Journal 78(3), 2011 (with Y. Altunbaş).

“Unit roots, structural breaks and cointegration in the UK public finances, 1750-2004.” Applied Economics 43(19), 2011 (with L. Lusinyan).