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Financial Crises: Review and Evidence

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  • Stijn Claessens
  • M. Ayhan Kose

Abstract

This paper presents a brief review of the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents the frequency and distribution of crises over time and across countries. Third, what are the real and financial sector implications of crises? The paper briefly reviews the adverse effects of crises for the real economy and financial sector.

Suggested Citation

  • Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Review and Evidence," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 13(3), pages 1-23.
    • Handle: RePEc:tcb:cebare:v:13:y:2013:i:3:p:1-23
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    References listed on IDEAS

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    Cited by:

    1. Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Explanations, Types and Implications," CAMA Working Papers 2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Zhu, Xiaoqian & Xie, Yongjia & Li, Jianping & Wu, Dengsheng, 2015. "Change point detection for subprime crisis in American banking: From the perspective of risk dependence," International Review of Economics & Finance, Elsevier, vol. 38(C), pages 18-28.

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    More about this item

    Keywords

    Sudden stops; Debt crises; Banking crises; Currency crises; Defaults; Policy implications; Financial restructuring; Asset booms; Credit booms; Crises prediction;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • G01 - Financial Economics - - General - - - Financial Crises
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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