The Balance Sheet Approach to Financial Crises in Emerging Markets
AbstractThis paper contrasts the conventional balance sheet approach to the analysis of economic disturbances in emerging markets with the alternative balance sheet approach that applies and extends Minsky's Financial Instability Hypothesis to (open) emerging market economies. Earlier balance sheet studies are found to be flawed because of a failure to disaggregate firms' balance sheets. Examination of such balance sheets in Thailand, Malaysia, Indonesia, Singapore, and Hong Kong suggests that firms in the three crisis countries did share common causes of financial fragility, but that the level of financial development and the particular domestic economic and political situation also affected their situation.
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Bibliographic InfoPaper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_485.
Date of creation: Dec 2006
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This paper has been announced in the following NEP Reports:
- NEP-ACC-2007-02-24 (Accounting & Auditing)
- NEP-ALL-2007-02-24 (All new papers)
- NEP-PKE-2007-02-24 (Post Keynesian Economics)
- NEP-SEA-2007-02-24 (South East Asia)
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