External Vulnerability in Emerging Market Economies : How High Liquidity Can Offset Weak Fundamentals and the Effects of Contagion /

This paper investigates the factors behind the 1994 and 1997 crises and whether these can explain the 1998 crisis. The study reveals that: (i) variables used in an Early Warning System model developed by IMF staff scored well in predicting the 1998 crisis out-of-sample; (ii) all three crisis episode...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Mulder, Christian
مؤلفون آخرون: Bussiere, Matthieu
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1999.
سلاسل:IMF Working Papers; Working Paper ; No. 1999/088
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper investigates the factors behind the 1994 and 1997 crises and whether these can explain the 1998 crisis. The study reveals that: (i) variables used in an Early Warning System model developed by IMF staff scored well in predicting the 1998 crisis out-of-sample; (ii) all three crisis episodes can be well explained by a parsimonious set of core fundamentals and liquidity related variables; and (iii) the presence of an IMF-supported program significantly reduced the depth of crises. The results suggest that as a rule of thumb countries should hold reserves to the tune of short-term debt to avoid contagion-related crises, provided their current deficits are modest and their real effective exchange rates are not significantly misaligned.
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وصف مادي:1 online resource (41 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students