Financial Contagion in Five Small Open Economies: Does the Exchange Rate Regime Really Matter?
This paper examines the spillover effects of the global financial crises of 1997-9 on five small open economies with different types of exchange rate regimes: the Czech Republic, Greece, Hungary, Israel and Poland. We found empirical evidence that the regional aspect played a dominant role in the intensity of the spillover effects. We found no empirical evidence that the pressures on exchange rates, interest rates and stock markets were primarily influenced by the exchange rate regime in place. Our findings do not support the commonly held view that flexible regimes are the best choice for small open emerging market economies exposed to volatile capital flows. Copyright 2000 by Blackwell Publishers Ltd.
Year of publication: |
2000
|
---|---|
Authors: | Darvas, Zsolt ; Szapary, Gyorgy |
Published in: |
International Finance. - Wiley Blackwell, ISSN 1367-0271. - Vol. 3.2000, 1, p. 25-51
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Fiscal Divergence and Business Cycle Synchronization : Irresponsibility is Idiosyncratic
Darvas, Zsolt, (2021)
-
Euro Area Enlargement and Euro Adoption Strategies
Darvas, Zsolt, (2008)
-
Business Cycle Synchronization in the Enlarged EU : Comovements in the New and Old Members
Darvas, Zsolt, (2006)
- More ...