that includes developed, and developing countries over the last two decades. In particular, they examine whether the choice … adopting a fixed exchange rate, diminishes the likelihood of a banking crisis in developing countries. But once a banking … crisis occurs, its real costs - in terms of forgone output growth - are higher for countries with more stringent exchange …

interest rates. To examine the characteristics of international market integration and the effects of capital controls in the … those of controls on inflows. For example, controls on outflows in Venezuela during the 1994 crisis, and unremunerated … reserve requirements in Chile and Colombia during a capital-inflow episode, seem to have shielded domestic markets at the most …

Inherent in pursuing openness to international capital flows is an awareness that it brings both benefits and risks … institutions and the discipline of capital markets in conducting domestic macroeconomic policy. By easing financing constraints … openness. A shift in foreign leaders'and investors'sentiments and confidence, not necessarily related to a particular country …

The authors analyze how foreign entry affected domestic banks in Argentina during an especially intense period of entry … in the mid-1990s. Their results are consistent with the hypothesis that foreign banks enter areas where they have a … banks with loan portfolios concentrated in manufacturing - an area to which foreign banks have traditionally devoted much of …

deposits in emerging markets has continued, despite declines in a few countries. Their analysis of the new data suggests that a … banking system, thereby reducing the supply of credit. Moreover, increases in deposit dollarization are associated with … increases in offshore deposits, which probably helps to explain the authors'finding that dollarization is associated with an …

The stimulation of private saving is essential to both stabilization and structural adjustment in the transition … economies. Private saving in these countries has declined sharply since independence, and this decline has been a factor in the … examines evidence on spending in Belarus, Georgia, Kazakhstan, and Ukraine. He examines decisions about whether to save,and in …

Recent developments in a number of emerging economies have heightened interest in the relationship between … macroeconomic management and financial regulation, in an environment of open capital accounts and large-scale movements of private … capital. The authors analyze the Turkish experience with capital flows in a macro-economy characterized by chronically high …

construct a new comprehensive chronology of financial liberalization in 28 developed and emerging economies since 1973. The … authors also construct an algorithm to identify booms and busts in stock market prices. The results indicate that financial … liberalization is followed by more pronounced boom-bust cycles in the short run. But financial liberalization leads to more stable …

discuss policy recommendationsThey make detailed recommendations in the context of nine general lessons learned from the East … manage risks prudently. Put in place incentives for sound corporate finance to prevent high leverage ratios and overreliance … on foreign borrowing. 2) Managing crises and contagion: In the context of sound policies, mobilize timely external …