Currency Crises and the Real Economy
AbstractThis paper shows that the quality of banks within each country is one of the important factors that can account for the fact that developing economies tend to suffer more severe output contractions in the wake of a currency crisis than more mature economies. In particular, countries with a banking sector whose balance sheets are healthy, in terms of having high net worth and low foreign currency exposure, are much less likely to suffer a contraction in the wake of an unexpected depreciation.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 01/49.
Date of creation: 01 May 2001
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-02 (All new papers)
- NEP-BAN-2006-07-02 (Banking)
- NEP-CBA-2006-07-02 (Central Banking)
- NEP-FDG-2006-07-02 (Financial Development & Growth)
- NEP-FMK-2006-07-02 (Financial Markets)
- NEP-IFN-2006-07-02 (International Finance)
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