01676cas a2200253 a 4500 AALejournalIMF001571 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451841763 1018-5941 BD-DhAAL BD-DhAAL Detragiache, Enrica. Crises and Liquidity : Evidence and Interpretation / Enrica Detragiache, Antonio Spilimbergo. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In a large panel of countries, we find that less liquid countries are more likely to default on their external debt. Specifically, for given total external debt, the probability of a crisis increases with the proportion of short-term debt and debt service coming due and decreases with foreign exchange reserves. This correlation, however, is consistent with a standard model of optimal default and need not be ascribed to self-fulfilling creditor runs. Also, the correlation with short-term debt appears to be driven by joint endogeneity. The policy implications are discussed. Mode of access: Internet Spilimbergo, Antonio. IMF Working Papers; Working Paper ; No. 2001/002 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/002/001.2001.issue-002-en.xml IMF e-Library