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Financial Crises in Emerging Markets : The Lessons from 1995

Sachs, Jeffrey - 1996

In this paper we examine closely the financial events following the Mexican peso devaluation to uncover new lessons about the nature of financial crises. We explore the question of why, during 1995, some emerging markets were hit by financial crises while others were not. To this end, we ask...

Persistent link: https://www.econbiz.de/10012473272

Fetters of Gold and Paper

Eichengreen, Barry - 2010

We describe in this essay why the gold standard and the euro are extreme forms of fixed exchange rates, and how these …

Persistent link: https://www.econbiz.de/10012462453

The Breakup of the Euro Area

Eichengreen, Barry - 2007

The possibility that the euro area might break up was being raised even before the single currency existed. These … scenarios were then lent new life five or six years on, when appreciation of the euro and problems of slow growth in various … unlikely, I argue here, that one or more members of the euro area will leave in the next ten years; total disintegration of the …

Persistent link: https://www.econbiz.de/10012465257

The Macroeconomic Consequences of Exchange Rate Depreciations

Fukui, Masao; Nakamura, Emi; Jón Steinsson - National Bureau of Economic Research - 2023

We study the consequences of "regime-induced" exchange rate depreciations by comparing outcomes for peggers versus floaters to the US dollar in response to a dollar depreciation. Pegger currencies depreciate relative to floater currencies and these depreciations are strongly expansionary. The...

Persistent link: https://www.econbiz.de/10014287380

Rose, Andrew K. - 2013

In contrast to earlier recessions, the monetary regimes of many small economies have not changed in the aftermath of the global financial crisis. This is due in part to the fact that many small economies continue to use hard exchange rate fixes, a reasonably durable regime. However, most of the...

Persistent link: https://www.econbiz.de/10012459030

Living with the Trilemma Constraint : Relative Trilemma Policy Divergence, Crises, and Output Losses for Developing Countries

Aizenman, Joshua - 2013

This paper investigates the potential impacts of the degree of divergence in open macroeconomic policies in the context of the trilemma hypothesis. Using an index that measures the relative policy divergence among the three trilemma policy choices, namely monetary independence, exchange rate...

Persistent link: https://www.econbiz.de/10012459214

A Distant Mirror of Debt, Default, and Relief

Reinhart, Carmen M. - 2014

We take a first pass at quantifying the magnitudes of debt relief achieved through default and restructuring in two distinct samples: 1979-2010, focusing on credit events in emerging markets, and 1920-1939, documenting the official debt hangover in advanced economies that was created by World...

Persistent link: https://www.econbiz.de/10012458088

From Sudden Stops to Fisherian Deflation : Quantitative Theory and Policy Implications

Korinek, Anton - 2013

The 1990s Sudden Stops in emerging markets were a harbinger for the 2008 global financial crisis. During Sudden Stops, countries lost access to credit, causing abrupt current account reversals, and suffered Great Recessions. This paper reviews a class of models that yields quantitative...

Persistent link: https://www.econbiz.de/10012459300

Does Short-Term Debt Increase Vulnerability to Crisis? Evidence from the East Asian Financial Crisis

Benmelech, Efraim - 2011

Does short-term debt increase vulnerability to financial crisis, or does short-term debt reflect -- rather than cause -- the incipient crisis? We study the role that short-term debt played in the collapse of the East Asian financial sector in 1997-1998. We alleviate concerns about the...

Persistent link: https://www.econbiz.de/10012461191

Will Subprime be a Twin Crisis for the United States?

Dooley, Michael P. - 2008

We identify incentives generated by the Bretton Woods II system that may have contributed to the sub-prime liquidity crisis now working its way through the international monetary system. We then evaluate the persistent conjecture that the liquidity crisis is or will become a balance of payments...

Persistent link: https://www.econbiz.de/10012464668