We argue that allowing for the possibility of a self-fulfilling panic helps understand several features of the recent Mexican Crisis. We present a simple model too explain how and why multiple equilibria can occur for some levels of reserves or debt, but not for others.

In this paper we closely exemine the financial events following the Mexican peso devaluation to uncover new lesons about the nature of financial crises.

Many studies of regional disparity in China have focused on the preferential policies received by the coastal provinces. We decomposed the location dummies in provincial growth regressions to obtain estimates of the effects of geography and policy on provincial growth rates in 1996–99....