Crises and Sudden Stops: Evidence from International Bond and Syndicated-Loan Markets
The crises in Mexico, Thailand, and Russia in the 1990s spread quite rapidly to countries as far apart as South Africa and Pakistan. In the aftermath of these crises, many emerging economies lost access to international capital markets. Using data on international primary issuance, this paper studies the determinants of contagion and sudden stops following those crises. The results indicate that contagion and sudden stops tend to occur in economies with financial fragility and current account problems. They also show that high integration in international capital markets exposes countries to sudden stops even in the absence of domestic vulnerabilities.
This paper was written in part while I was a visiting scholar at the Bank of Japan. I gratefully acknowledge the hospitality of the Institute for Monetary and Economic Studies at the Bank of Japan. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
- Extensive integration in international capital markets exposes countries to sudden stops, even in the absence of domestic vulnerabilities...
Graciela L. Kaminsky, 2008. "Crises and Sudden Stops: Evidence from International Bond and Syndicated-Loan Markets," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 26, pages 107-130, December. citation courtesy of