Discriminating Contagion : An Alternative Explanation of Contagious Currency Crises in Emerging Markets /

This paper shows that a country's vulnerability to contagious crises depends on the visible similarities between that country and other countries that are experiencing crises. A country is vulnerable to shifts in investor sentiment if it exhibits weaknesses in the same economic variables as oth...

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Автор: Ahluwalia, Pavan
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2000.
Серія:IMF Working Papers; Working Paper ; No. 2000/014
Онлайн доступ:Full text available on IMF
Опис
Резюме:This paper shows that a country's vulnerability to contagious crises depends on the visible similarities between that country and other countries that are experiencing crises. A country is vulnerable to shifts in investor sentiment if it exhibits weaknesses in the same economic variables as other countries affected by a contagious crisis (particularly the country that started the contagious wave), or if it is located in the same region. The paper uses a sample of 19 emerging markets, and data from the Mexican, Asian, and Russian crises to provide evidence of this discriminating contagion, after controlling for alternative channels of contagion such as trade spillovers and financial linkages.
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Фізичний опис:1 online resource (38 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students