The twin crises: the causes of banking and balance-of-payments problems

Article Abstract:

Problems in the onset of 76 currency crises and 26 banking crises that occurred in 20 countries from 1970 to 1995 are analyzed to determine the links between these two crises. Banking and currency crises are found to be closely linked in the aftermath of financial liberalization, with banking crises usually starting before the currency collapse. Results also provide evidence of vicious cycles, in which the currency collapse worsens the already frail condition of the banking sector.

Banking industry, Economic aspects, Balance of payments, Recessions

---

Financial crises in Asia and Latin America: then and now

Article Abstract:

A comparison of the East Asian (EA) and Latin American (LA) financial crises reveals that the regional differences are starting to be eroded and that the same mechanisms responsible for the EA financial crisis may be found in LA. The study points to the increased volume of capital inflows into the regions and the booms in lending and asset prices as the common denominators of the two regions before the onset of their respective financial crises.

Administration of General Economic Programs, Economics, Research and Development in the Social Sciences and Humanities, Currency Stabilization Programs, Foreign exchange, Currency devaluation, International finance, Devaluation (Currency), Currency stabilization

---

The unholy trinity of financial contagion

Article Abstract:

The important role of common creditors and financial linkages in contagion are emphasized. The three key elements that distinguishes the unholy trinity of financial contagion are capital inflows, surprises and common creditors.

United States, Management dynamics, Financial Systems & Controls, Financial Management, Management, Company business management, Debtor and creditor

Similar abstracts:

• Abstracts: Regional local borrowings in the context of financial and fiscal reform. Stereotypes and realities of Russian fiscal federalism
• Abstracts: Examining legislative challenges to central bank autonomy: macroeconomic and agency-costs models. Financial liberalisation: from segmented to integrated economies
• Abstracts: Are institutional rigidities at the root of European unemployment?. Outsourcing and the provision of welfare-related services to unemployed youth in New Zealand
• Abstracts: The effect of Russian antitrust laws on economic development
• Abstracts: Russia's labor market in the system of social and labor relations. The Russian system of unemployment protection in the context of international experience

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.