This study analyzes the causes of the market discipline failure in the recent financial crisis. We argue that the most important market failure of informativeness was that large financial institutions had the incentive to remain opaque strategically so that outside investors could not assess...

We investigate the effects of alternative exchange rate regimes on the probability of banking crises using a new set of classifications from the IMF that allows us to distinguish between hard and soft pegs. We find that this distinction is quite important and helps explain some of the...

Various claims have been made about the causes of the Asian crisis and its spread. Here, we use data on the behaviour of capital flows during the crisis to test the strong forms of four such hypotheses, that portfolio investors and hedge funds played a dominant role in initiating and/or...