NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Financial Crises in Emerging Markets


THE NBER PROJECT ON EXCHANGE RATE CRISES IN

EMERGING MARKET COUNTRIES


This NBER project is examining the causes of currency crises in emerging market countries as well as the policies that can reduce the risk of future crises and the adverse effects when such crises occur. For examples of the kinds of questions that will be examined in this research, click here.

The project is under the general direction of Professor Jeffrey Frankel, Director of the NBER Program on International Finance and Macroeconomics. Professors Sebastian Edwards and Michael Dooley, both members of the NBER Program on International Finance and Macroeconomics, are codirectors with Professor Frankel of two of the conferences, producing respectively the two volumes: Preventing Currency Crises in Emerging Markets, and Managing Currency Crises in Emerging Markets. In addition, the NBER organized a nontechnical conference that brought together individuals who played key roles in dealing with the economic crisis. These included officials from the US and foreign governments and central banks, officials of the international financial institutions, and senior executives of private financial institutions. The participants made personal statements about the crisis prevention and management. The volume, Economic and Financial Crises in Emerging Market Economies, edited by Martin Feldstein, also contains background papers on various aspects of crisis prevention and crisis management. The general advisory committee of the project also includes NBER Research Associates Martin Feldstein, Paul Krugman and Jeffrey Sachs.

This site contains a list of NBER working papers on this subject. Clicking on the paper title below will lead to an abstract of the paper and to a full copy of the paper itself. The papers can be downloaded without any charge by anyone in an emerging market country or in an institution that subscribes to the NBER Working Papers. For further information about eligibility to download working papers without charge, click here.

Related NBER volumes are also listed below.


CONFERENCES

Capital Account Convertibility
and Capital Controls in
Emerging Market Countries

November 6, 1998
Conference Agenda
Conference Report

Session on Thailand
April 22, 1999
Conference Agenda
Background Materials
Conference Report

Session on Mexico
May 6, 1999
Conference Agenda
Background Materials

Session on Korea
February 1, 2000
Conference Agenda
Background Materials
Conference Report

Session on Brazil
April 15, 2000
Conference Agenda
Background Materials
Conference Report

Economic and Financial Crises in Emerging Market Economies
October 19-21, 2000
Conference Agenda

Session on Indonesia
September 15, 2000
Conference Agenda
Background Materials
Conference Report

Preventing Currency Crises in Emerging Markets
January 11-13, 2001
Conference Agenda

Session on Malaysia
February 16, 2001
Conference Agenda
Background Materials
Conference Report

Managing Currency Crises in Emerging Markets
March 28-31, 2001
Conference Agenda

Session on Turkey
July 18, 2001
Conference Agenda
Background Materials
Conference Report

Session on Argentina
July 17, 2002
Conference Agenda
Background Materials
Conference Report
Speech by Anne Krueger
Speech by Domingo Cavallo


RESEARCH PAPERS

  • Odious Debt
    Michael Kremer, Seema Jayachandran
    NBER Working Paper 8953

  • Why Should Emerging Economies Give up National Currencies: A Case for 'Institutions Substitution'
    Enrique G. Mendoza
    NBER Working Paper 8950

  • Debt Relief and Fiscal Sustainability
    NBER Working Paper 8939

  • Liquidity Shortages and Banking Crises
    Douglas W. Diamond, Raghuram G. Rajan
    NBER Working Paper 8937

  • Credit Frictions and 'Sudden Stops' in Small Open Economies: An Equilibrium Business Cycle Framework for Emerging Markets Crises
    Cristina Arellano, Enrique G. Mendoza
    NBER Working Paper 8880

  • A Dual Liquidity Model for Emerging Markets
    Ricardo J. Caballero, Arvind Krishnamurthy
    NBER Working Paper 8758

  • Competition and Intervention in Sovereign Debt Markets
    Bernhard Paasche, Stanley E. Zin
    NBER Working Paper 8679

  • The Role of Industrial Country Policies in Emerging Market Crises
    Jeffrey A. Frankel, Nouriel Roubini
    NBER Working Paper 8634

  • Financial Markets in Times of Stress
    Graciela L. Kaminsky, Carmen M. Reinhart
    NBER Working Paper 8569

  • The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology
    Jed Friedman, James Levinsohn
    NBER Working Paper 8564

  • What Hurts Most? G-3 Exchange Rate or Interest Rate Volatility
    Carmen M. Reinhart, Vincent R. Reinhart
    NBER Working Paper 8535

  • Cronyism and Capital Controls: Evidence from Malaysia
    Simon Johnson, Todd Mitton
    NBER Working Paper 8521

  • Between Meltdown and Moral Hazard: The International Monetary and Financial Policies of the Clinton Administration
    J. Bradford DeLong, Barry Eichengreen
    NBER Working Paper 8443

  • A "Vertical" Analysis of Crises and Intervention: Fear of Floating and Ex-ante Problems
    Ricardo Caballero, Arvind Krishnamurthy
    NBER Working Paper 8428

  • Smoothing Sudden Stops
    Ricardo Caballero, Arvind Krishnamurthy
    NBER Working Paper 8427

  • Financial Restructuring in Banking and Corporate Sector Crises: What Policies to Pursue?
    Stijn Claessens, Daniela Klingebiel, Luc Laeven
    NBER Working Paper 8386

  • Recovery and Sustainability in East Asia
    Yung Chul Park, Jong-Wha Lee
    NBER Working Paper 8373

  • Credit, Prices, and Crashes: Business Cycles with a Sudden Stop
    Enrique G. Mendoza
    NBER Working Paper 8338

  • Economic Growth in East Asia Before and After the Financial Crisis
    Robert J. Barro
    NBER Working Paper 8330

  • Domestic Bank Regulation and Financial Crises: Theory and Empirical Evidence from East Asia
    Robert Dekle, Kenneth M. Kletzer
    NBER Working Paper 8322

  • Rescue Packages and Output Losses Following Crises
    Michael P. Dooley, Sujata Verma
    NBER Working Paper 8315

  • A Cure Worse Than the Disease? Currency Crises and the Output Costs of IMF-Supported Stabilization Programs
    Michael M. Hutchison
    NBER Working Paper 8305

  • The Role of Large Players in Currency Crises
    Giancarlo Corsetti, Paolo Pesenti, Nouriel Roubini
    NBER Working Paper 8303

  • Financial Policies and the Prevention of Financial Crises in Emerging Market Countries
    Frederic S. Mishkin
    NBER Working Paper 8087

  • Foreign Direct Investors in Three Financial Crises
    Robert E. Lipsey
    NBER Working Paper 8084

  • Balance Sheet Effects, Bailout Guarantees and Financial Crises
    Martin Schneider, Aaron Tornell
    NBER Working Paper 8060

  • Evolution and Revolution in the Argentine Banking System under Convertibility: The Roles of Crises and Path Dependence
    Lee J. Alston, Andres Gallo
    NBER Working Paper 8008

  • Japan Premium and Stock Prices: Two Mirrors of Japanese Banking Crises
    Takatoshi Ito, Kimie Harada
    NBER Working Paper 7997

  • Fear of Floating
    Guillermo A. Calvo, Carmen M. Reinhart
    NBER Working Paper 7993

  • Private Inflows when Crises are Anticipated: A Case Study of Korea
    Michael P. Dooley, Inseok Shin
    NBER Working Paper 7992

  • International and Domestic Collateral Constraints in a Model of Emerging Market Crises
    Ricardo Caballero, Arvind Krishnamurthy
    NBER Working Paper 7971

  • The Credit Crunch in East Asia: What can Bank Excess Liquid Assets Tell us?
    P.R. Agenor, J. Aizenman, A. Hoffmaister
    NBER Working Paper 7951

  • Prudential Supervision: Why Is It Important and What are the Issues?
    Frederic S. Mishkin
    NBER Working Paper 7926

  • A New Approach to Measuring Financial Contagion
    Kee-Hong Bae, G. Andrew Karolyi, Rene M. Stulz
    NBER Working Paper 7913

  • International Capital Inflows, Domestic Financial Intermediation and Financial Crises under Imperfect Information
    Menzie D. Chinn, Kenneth M. Kletzer
    NBER Working Paper 7902

  • Contagion in Latin America: Definitions, Measurement, and Policy Implications
    Kristin Forbes and Roberto Rigobon
    NBER Working Paper 7885

  • Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate-Based-Stabilizations
    Ariel T. Burnstein, João C. Neves, and Sergio Rebelo
    NBER Working Paper 7862

  • Managers, Investors, and Crises: Mutual Fund Strategies in Emerging Markets
    Graciela Kaminsky, Richard K. Lyons, and Sergio Schmukler
    NBER Working Paper 7855

  • Creative Destruction and Development: Institutions, Crises, and Restructuring
    Ricardo J. Caballero and Mohamad L. Hammour
    NBER Working Paper 7849

  • Balance Sheets and Exchange Rate Policy
    Luis Felipe Céspedes, Roberto Chang, and Andrés Velasco
    NBER Working Paper 7840

  • Dollarization of Liabilities: Underinsurance and Domestic Financial Underdevelopment
    Ricardo J. Caballero and Arvind Krishnamurthy
    NBER Working Paper 7792

  • Banks, Short Term Debt and Financial Crises: Theory, Policy Implications and Applications
    Douglas W. Diamond and Raghuram G. Rajan
    NBER Working Paper 7764

  • International Liquidity Management: Sterilization Policy in Illiquid Financial Markets
    Ricardo J. Caballero and Arvind Krishnamurthy
    NBER Working Paper 7740

  • Delaying the Inevitable: Optimal Interest Rate Policy and BOP Crises
    Amartya Lahiri and Carlos A. Végh
    NBER Working Paper 7734

  • Debt Restructuring
    Benjamin M. Friedman
    NBER Working Paper 7722

  • Can Emerging Market Bank Regulators Establish Credible Discipline? The Case of Argentina, 1992-1999
    Charles W. Calomiris and Andrew Powell
    NBER Working Paper 7715

  • Foreign and Domestic Bank Participation in Emergin Markets: Lessons from Mexico and Argentina
    Linda Goldberg, B. Gerard Dages, and Daniel Kinney
    NBER Working Paper 7714

  • Measuring Real Economic Effects of Bailouts: Historical Perspectives on How Countries in Financial Distress Have Fared With and Without Bailouts
    Michael Bordo and Anna J. Schwarz
    NBER Working Paper 7701

  • The Bail-In Problem: Systematic Goals, Ad Hoc Means
    Barry Eichengreen and Christof Rühl
    NBER Working Paper 7653

  • Controls on Capital Inflows: Do They Work?
    José De Gregorio, Sebastian Edwards, and Rodrigo O. Valdés
    NBER Working Paper 7645

  • Government Ownership of Banks
    Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer
    NBER Working Paper 7620

  • Inflation Targeting in Emerging Market Countries
    Frederic S. Mishkin
    NBER Working Paper 7618

  • Monetary Policy Strategies for Latin America
    Frederic S. Mishkin and Miguel A. Savastano
    NBER Working Paper 7617

  • Medium-Term Determinants of Current Accounts in Industrial and Developing Countries: An Empirical Exploration
    Menzie Chinn and Eswar S. Prasad
    NBER Working Paper 7581

  • On the Fundamentals of Self-Fulfilling Speculative Attacks
    Craig Burnside, Martin Eichenbaum and Sergio T. Rebelo
    NBER Working Paper 7554

  • Can Output Losses Following International Financial Crises be Avoided?
    Michael P. Dooley
    NBER Working Paper 7531

  • U.S. Banks, Crises, and Bailouts: From Mexico to LTCM
    Rene M. Stultz
    NBER Working Paper 7529

  • Capital Movements, Banking Insolvency, and Silent Runs in the Asian Financial Crisis
    Edward J. Kane
    NBER Working Paper 7514

  • Identification through Heteroskedasticity: Measuring "Contagion" between Argentinean and Mexican Sovereign Bonds
    Roberto Rigobon
    NBER Working Paper 7493

  • Causes of the Korean Financial Crisis: Lessons for Policy
    Joon-Ho Hahm and Frederic S. Mishkin
    NBER Working Paper 7483

  • Would Collective Action Clauses Raise Borrowing Costs?
    Barry Eichengreen and Ashoka Mody
    NBER Working Paper 7458

  • Financial Sector Inefficiencies and Coordination Failures
    Pierre-Richard Agénor and Joshua Aizenman
    NBER Working Paper 7446

  • Capital Contols and Financial Crises
    Joshua Aizenman
    NBER Working Paper 7398

  • Latin America and Foreign Capital in the Twentieth Century: Economics, Politics, and Institutional Change
    Alan M. Taylor
    NBER Working Paper 7394

  • Uncertainty and the Disappearance of International Credit
    Joshua Aizenman and Nancy Marion
    NBER Working Paper 7389

  • Internal Versus External Convertibility and Developing-Country Financial Crises: Lessons from the Argentine Bank Bailout of the 1930s
    Gerardo della Paolera and Alan M. Taylor
    NBER Working Paper 7386

  • Banks, the IMF, and the Asian Crisis
    Bong-Chan Kho and Rene M. Stultz
    NBER Working Paper 7361

  • No Single Currency Regime is Right for All Countries or At All Times
    Jeffrey A. Frankel
    NBER Working Paper 7338

  • Liquidity Crises in Emerging Markets: Theory and Policy
    Roberto Chang and Andres Velasco
    NBER Working Paper 7272

  • No Contagion, Only Interdependence: Measuring Stock Market Co-Movements
    Kristin Forbes and Roberto Rigobon
    NBER Working Paper 7267

  • International Institutions for Reducing Global Financial Instability
    Kenneth Rogoff
    NBER Working Paper 7265

  • Can Capital Mobility be Destabilizing?
    Qinglai Meng and Andres Velasco
    NBER Working Paper 7263

  • Crisis Prevention: Lessons from Mexico and East Asia
    Sebastian Edwards
    NBER Working Paper 7233

  • Exchange Rates in Emerging Economies: What Do We Know? What Do We Need to Know
    Sebastian Edwards and Miguel A. Savastano
    NBER Working Paper 7228

  • The Dynamics of Emerging Market Equity Flows
    Geert Bekaert, Campbell Harvey and Robin L. Lumsdaine
    NBER Working Paper 7219

  • Political Contagion in Currency Crises
    Allan Drazen
    NBER Working Paper 7211

  • Reserve Uncertainty and the Supply of International Credit
    Joshua Aizenman and Nancy Marion
    NBER Working Paper 7202

  • Impacts of the Indonesian Economic Crisis: Price Changes and the Poor
    James Levinsohn, Steven Berry and Jed Friedman
    NBER Working Paper 7194

  • Hedging and Financial Fragility in Fixed Exchange Rate Regimes
    Craig Burnside, Martin Eichenbaum and Sergio Rebelo
    NBER Working Paper 7143

  • Common Fundamentals in the Tequila and Asian Crises
    Aaron Tornell
    NBER Working Paper 7139

  • Capital Flows in Asia
    Takatoshi Ito
    NBER Working Paper 7134

  • Offshore Investment Funds: Monsters in Emerging Markets?
    Woochan Kim and Shnag-Jin Wei
    NBER Working Paper 7133

  • Lending Booms, Reserves, and the Sustainability of Short-Term Debt: Inferences from the Pricing of Syndicated Bank Loans
    Barry Eichengreen and Ashoka Mody
    NBER Working Paper 7113

  • Lessons from the Asian Crisis
    Frederic S. Mishkin
    NBER Working Paper 7102

  • Latin America and East Asia in the Context of an Insurance Model of Currency Crises
    Menzie D. Chinn, Michael P. Dooley and Sona Shrestha
    NBER Working Paper 7091

  • The Role of Bank Restructuring in Recovering from Crises: Mexico 1995-98
    Anne Krueger and Aaron Tornell
    NBER Working Paper 7042

  • Do Foreign Investors Destabilize Stock Markets? The Korean Experience in 1997
    Hyuk Choe, Bong-Chan Kho and Rene M. Stultz
    NBER Working Paper 7021

  • Devaluation Risk and the Syndrome of Exchange-Rate-Based Stabilizations
    Enrique G. Mendoza and Martin Uribe
    NBER Working Paper 7014

  • Foreign Portfolio INvestors Before and During a Crisis
    Woochan Kim and Shang-Jin Wei
    NBER Working Paper 6968

  • The Distribution of Exchange Rate Volatility
    Torben Anderson, Tim Bollerslev, Francis X. Diebold, and Paul Labys
    NBER Working Paper 6961

  • An Options-Based Analysis of Emerging Market Exchange Rate Expectations: Brazil's Real Plan, 1994-1997
    Jose M. Campa, P.H. Kevin Chang and James F. Refalo
    NBER Working Paper 6929

  • Inflation Stabilization and BOP Crises in Developing Countries
    Guillermo A. Calvo and Carlos A. Vegh
    NBER Working Paper 6925

  • Self-Protection for Emerging Market Economies
    Martin Feldstein
    NBER Working Paper 6907

  • Risks to Lenders and Borrowers in International Capital Markets
    Benjamin E. Hermalin and Andrew K. Rose
    NBER Working Paper 6886

  • Contagion, Bank Lending Spreads and Output Fluctuations
    P.R. Agenor, J. Aizenman and A. Hoffmaister
    NBER Working Paper 6850

  • Emerging Market Crises: An Asset Markets Perspective
    Ricardo J. Caballero and Arvind Krishnamurthy
    NBER Working Paper 6843

  • What Caused the Asian Currency and Financial Crisis? Part II: The Policy Debate
    Giancarlo Corsetti, Paolo Pesenti and Nouriel Roubini
    NBER Working Paper 6834

  • What Caused the Asian Currency and Financial Crisis? Part I: A Macroeconomic Overview
    Giancarlo Corsetti, Paolo Pesenti and Nouriel Roubini
    NBER Working Paper 6833

  • Under What Circumstances, Past and Present, Have International Rescues of Countires in Financial Distress Been Successful?
    Michael D. Bordo and Anna J. Schwartz
    NBER Working Paper 6824

  • The Case for a Populist Banker
    Andres Velasco and Vincenzo Guzzo
    NBER Working Paper 6802

  • Capital Flows, Real Exchange Rates, and Capital Controls: Some Latin American Experiences
    Sebastian Edwards
    NBER Working Paper 6800

  • The Asian Liquidity Crisis
    Roberto Chang and Andres Velasco
    NBER Working Paper 6796

  • Paper Tigers? A Model of the Asian Crisis
    Giancarlo Corsetti, Paolo Pesenti and Nouriel Roubini
    NBER Working Paper 6783

  • Prospective Deficits and the Asian Currency Crisis
    Craig Burnside, Martin Eichenbaum and Sergio Rebelo
    NBER Working Paper 6758

  • Interest Rate Volatility, Capital Controls, and Contagion
    Sebastian Edwards
    NBER Working Paper 6756

  • How Did the Dollar Peg Fail in Asia?
    Takatoshi Ito, Eiji Ogawa, Yuri Nagataki Sasaki
    NBER Working Paper 6729

  • The Onset of the East Asian Financial Crisis
    Steven Radelet and Jeffrey Sachs
    NBER Working Paper 6680

  • On the Won and Other East Asian Currencies
    Menzie D. Chinn
    NBER Working Paper 6671

  • Capital Flows and the Behavior of Emerging Markey Equity Returns
    Geert Bekaert and Campbell R. Harvey
    NBER Working Paper 6669

  • Derivatives in International Capital Flows
    Peter M. Garber
    NBER Working Paper 6623

  • Financial Crises in Emerging Markets
    Roberto Chang and Andres Velasco
    NBER Working Paper 6606

  • Capital Flows to Emerging Markets : Liberalization, Overshooting, and Volatility,
    Philippe Bacchetta and Eric van Wincoop
    NBER Working Paper 6530

  • The Morning After: The Mexican Peso in the Aftermath of the 1994 Currency Crisis
    Sebastian Edwards and Miguel Savastano
    NBER Working Paper 6516

  • Financial Fragility and the Exchange Rate Regime
    Roberto Chang and Andres Velasco
    NBER Working Paper 6469

  • Current Account Sustainability in Transition Economies
    Nouriel Roubini and Paul Wachtel
    NBER Working Paper 6468

  • Capital Inflows into Latin America: A Stop-Go Story?
    Sebastian Edwards
    NBER Working Paper 6441

  • Monetary Policy Under Exchange Rate Flexibility
    Rudiger Dornbusch
    NBER Working Paper 0311

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