Reinhart, Carmen (1999): Some Parallels Between Currency and Banking Crises: A Comment. Published in: International Finance and Financial Crises: Essays in Honor of Robert P. Flood Jr. (1999): pp. 19-23.
Download (44kB) | Preview
Comment: What Nancy Marion does in this paper is to present a cohesive survey of three strands of literature: the theoretical literature on currency crises, banking crises, and the more recent papers that have attempted to link the two. It is the "twin crisis" literature, which focuses on banking crises in open economy models, that the paper devotes the most attention to. Like the literature on currency crises, very different interpretations of the causes of the twin crises have been offered and this paper lays out some of the key differences between first generation models, which stress the role of economic fundamentals, and second generation models, which highlight the role of self-fulfilling crises and multiplicity of equilibria.
|Item Type:||MPRA Paper|
|Original Title:||Some Parallels Between Currency and Banking Crises: A Comment|
|Keywords:||banking crises currency crashes|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
F - International Economics > F3 - International Finance
|Depositing User:||Carmen Reinhart|
|Date Deposited:||07. Feb 2009 05:35|
|Last Modified:||16. Feb 2013 04:15|
Calvo, Guillermo. (1998). "Capital Flows and Capital-Market Crises: The Simple Economics of Sudden Stops." Journal of Applied Economics 1, 35-54.
Chang, Roberto, and Andres Velasco. (1998). "Financial Crises in Emerging Markets: A Canonical Model." NBER Working Paper No. 6606.
Diamond, Douglas, and Phillip Dybvig. (1983). "Bank Runs, Liquidity, and Deposit Insurance." Journal of Political Economy 91, 401-49.
Dooley, Michael P. O. "A Model of Crises in Emerging Markets." NBER Working Paper No. 6300.
Frankel, Jeffrey A., and Sergio L Schmukier. (1996). "Crisis, Contagion, and Country Funds: Effects on East Asia and Latin America." In Reuven Glick (ed.), Managing Capital Flows and Exchange Rates: Perspectives from the Pacific Basin. Cambridge: Cambridge University Press, pp. 232-266.
Gerlach, Stefan, and Frank Smets. (1995). "Contagious Speculative Attacks." European Journal of Political Economy 11,45-63.
Goldfajn, llan, and Rodrigo Valdes. (1997). "Capital Flows and the Twin Crises: The Role of Liquidity." International Monetary Fund Working Paper WP/97/87.
Kaminsky, Graciela L., and Carmen M. Reinhart. (1996). "The Twin Crises: The Causes of Banking and Balanceof-Payments Problems." International Finance Discussion Paper No. 544. Washington: Board of Governors of the Federal Reserve. Forthcoming in American Economic Review, 1999.
Kaminsky, Graciela, and Carmen M. Reinhart. (1998a). "Financial Crises in Asia and Latin America: Then and Now." American Economic Review 88(2), 444-448.
Kaminsky, Graciela, and Carmen M. Reinhart. (1998b). "On Crises, Contagion, and Confusion." Unpublished paper.
Obstfeld, Maurice. (1994). "The Logic of Currency Crises." Cahiers Economiques et Monetaires 43,
Available Versions of this Item
- Some Parallels Between Currency and Banking Crises: A Comment. (deposited 07. Feb 2009 05:35) [Currently Displayed]