Assessment of Corporate Sector Value and Vulnerability: Links to Exchange Rtae and Financial Crises
AbstractThis paper presents an innovative yet practical framework to assess corporate sector vulnerability and the links to exchange rates and financial crises that bridges the gap between corporate finance and macroeconomic analysis. This framework missing describing how changes in aggregate value of the corporate sector are interrelated with exchange rate crises, financial crises and associated fiscal costs of bank recapitalization. The factors that can make the corporate sector particularly vulnerable include both sector-specific characteristics (leverage, composition of debt, maturity of debt, hard currency profits, etc.) and characteristics of the current account adjustment process that feed back on corporate balance sheets. The framework has multiple applications. It can help policy makers and investors understand past crises and assess risks of future crises. It can also help improve surveillance as well as improve policy design at the macroeconomic, financial and corporate sector levels.
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Bibliographic InfoPaper provided by World Bank - Technical Papers in its series Papers with number 455.
Length: 44 pages
Date of creation: 1999
Date of revision:
EXCHANGE RATE ; FINANCIAL CRISIS ; MACROECONOMICS ; FINANCIAL MARKET;
Find related papers by JEL classification:
- E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kaminsky, Graciela L. & Reinhart, Carmen M., 2000.
"On crises, contagion, and confusion,"
Journal of International Economics,
Elsevier, vol. 51(1), pages 145-168, June.
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