Financial Crises in Emerging Markets

by Edited by Reuven Glick , Ramon Moreno , Mark M. Spiegel

• ISBN13: 9780521800204
• ISBN10: 052180020X
• Format: Hardcover
• Copyright: 2001-04-23
• Publisher: Cambridge University Press

Summary

This 2001 book looks at numerous financial crises, beginning with Mexico in 19941995, the Asian crisis of 19971998, and the crises in Russia, Brazil, and other Latin American countries in 19981999. Such contemporary crises illustrate the risks of financial volatility and macroeconomic instability during the process of economic growth and development. They also raise issues regarding the management of risks associated with liberalization and global integration, particularly in financial markets. Concerns about the implications of international capital flows for developing countries have grown with the sharply increased volume of these flows since the late 1980s. The essays in this volume provide analysis and evidence on the determinants of currency and banking crises in emerging markets, the specific roles of capital flows and the financial sector, and the appropriateness of various policy responses.

Table of Contents

Preface	vii
Contributors	ix
Financial Crises in Emerging Markets: An Introductory Overview	1	(34)
Reuven Glick
Ramon Moreno
Mark M. Spiegel
PART I DETERMINANTS AND PROPAGATION OF FINANCIAL CRISES
Banking and Currency Crises: How Common Are Twins?	35	(38)
Reuven Glick
Michael M. Hutchison
Discussion	70	(3)
Andrew K. Rose
Multiple Equilibria, Contagion, and the Emerging Market Crises	73	(33)
Paul R. Masson
Discussion	99	(7)
Paolo Pesenti
How Are Shocks Propagated Internationally? Firm-Level Evidence from the Russian and East Asian Crises	106	(61)
Kristin Forbes
Discussion	160	(7)
Kenneth Kasa
PART II CAPITAL FLOWS AND REVERSALS
Uncertainty and the Disappearance of International Credit	167	(29)
Joshua Aizenman
Nancy Marion
Discussion	191	(5)
Mark M. Spiegel
International Capital Inflows, Domestic Financial Intermediation, and Financial Crises under Imperfect Information	196	(47)
Menzie D. Chinn
Kenneth M. Kletzer
Discussion	238	(5)
Roberto Chang
Private Inflows when Crises Are Anticipated: A Case Study of Korea	243	(40)
Michael P. Dooley
Inseok Shin
Discussion	275	(8)
Carmen M. Reinhart
PART III INSTITUTIONAL FACTORS AND FINANCIAL STRUCTURE
Excessive FDI Flows under Asymmetric Information	283	(22)
Assaf Razin
Efraim Sadka
Chi-Wa Yuen
Discussion	302	(3)
Maurice Obstfeld
Corporate Growth and Risk around the World	305	(42)
Stijn Claessens
Simeon Djankov
Tatiana Nenova
Discussion	339	(8)
Richard K. Lyons
PART IV POLICY RESPONSES
Interest Rate Stabilization of Exchange Rates and Contagion in the Asian Crisis Countries	347	(37)
Robert Dekle
Cheng Hsiao
Siyan Wang
Discussion	380	(4)
Pierre-Richard Agenor
The Impact of Monetary Policy on Exchange Rates during Financial Crises	384	(43)
David Gould
Steven Kamin
Discussion	421	(6)
Henning Bohn
Capital Controls during Financial Crises: The Cases of Malaysia and Thailand	427	(30)
Hali J. Edison
Carmen M. Reinhart
Index	457