Reinhart, Carmen (2001): Fundamental determinants of the Asian crisis: The role of financial fragility and external imbalances (a comment). Published in: Regional and Global Capital Flows: Macroeconomic Causes and Consequences (2001): pp. 42-45.
Download (22kB) | Preview
Motivated by the severe Asian crisis of 1997, Giancarlo Corsetti, Paolo Pesenti, and Nouriel Roubini make a fine contribution to the growing literature that analyzes the symptoms of a country's vulnerability to currency crises. While the sample of countries covered in the empirical analysis encompasses diverse regions, the discussion in the paper focuses primarily on the Asian crisis. In particular, the authors stress, as they have in their earlier papers, the key role played by weak fundamentals in undermining several of the Asian currencies. Financial sector fundamentals play an important role, but the authors also devote considerable attention to the countries' capacity to back their "implicit" contingent liabilities, particularly those of the local banking sector.
|Item Type:||MPRA Paper|
|Original Title:||Fundamental determinants of the Asian crisis: The role of financial fragility and external imbalances (a comment)|
|Keywords:||Asia financial crisis banks currency crash liabilities capital flows|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
F - International Economics > F3 - International Finance > F30 - General
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
|Depositing User:||Carmen Reinhart|
|Date Deposited:||28. Feb 2009 12:51|
|Last Modified:||13. Feb 2013 20:49|
Calvo, Guillermo A., and Enrique Mendoza. 1996. Mexico's balance-of-payments crisis: A chronicle of a death foretold. Journal of International Economics 41 (3/4): 235-64.
Calvo, Guillermo A., and Carmen M. Reinhart. 2000. "When capital inflows come to a sudden stop: Consequences and policy options:' In Key Issues in Reform of the International Monetary and Financial System, ed. P. Kenen and A. Swoboda. Washington D.C.: International Monetary Fund, 2000: 175-201.
Kaminsky, Graciela, and Carmen M. Reinhart, with G. Kaminsky. 1999. The twin crises: The causes of banking and balance of payments problems. American Economic Review, 89 (3): 473-500.
Montiel, Peter, and Carmen M. Reinhart. 1999. Do capital controls influence the volume and composition of capital flows? Evidence from the 1990s. Journal of International Money and Finance, 18 (4): 619-35.
Sachs, Jeffrey, Aaron Tornell, and Andres Velasco. 1996. Financial crises in emerging markets: The lessons from 1995. Brookings Papers on Economic Activity, issue no. I: 147-215.
Available Versions of this Item
- Fundamental determinants of the Asian crisis: The role of financial fragility and external imbalances (a comment). (deposited 28. Feb 2009 12:51) [Currently Displayed]