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Comment on "Political Contagion in Currency Crises"

In: Currency Crises

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  • Carmen M. Reinhart

Abstract

Comments on: Alan Drazen, whose paper represents a first effort to formalize the role of political considerations in the process of how currency crises are transmitted across international borders. The theoretical literature on “contagion” is scarce, and the empirical literature equally so. Yet the EMS currency crises of 1992-93, the aftermath of the Mexican peso crisis of late 1994, and the meltdown of several Asian currencies in 1997 all have a flavor of “contagious currency crises.” Thus gaining a better understanding of the channels for contagion is a fruitful and timely line of inquiry.
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Suggested Citation

  • Carmen M. Reinhart, 2000. "Comment on "Political Contagion in Currency Crises"," NBER Chapters, in: Currency Crises, pages 67-70, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:13086
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    References listed on IDEAS

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    1. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    2. Barry Eichengreen & Andrew K. Rose & Charles Wyplosz, 1996. "Contagious Currency Crises," NBER Working Papers 5681, National Bureau of Economic Research, Inc.
    3. Reinhart, Carmen & Goldstein, Morris & Kaminsky, Graciela, 2000. "Assessing financial vulnerability, an early warning system for emerging markets: Introduction," MPRA Paper 13629, University Library of Munich, Germany.
    4. Obstfeld, Maurice, 1996. "Models of currency crises with self-fulfilling features," European Economic Review, Elsevier, vol. 40(3-5), pages 1037-1047, April.
    5. Morris Goldstein & Graciela Kaminsky & Carmen Reinhart, 2017. "Methodology and Empirical Results," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 11, pages 397-436, World Scientific Publishing Co. Pte. Ltd..
    6. Calvo, Sara & Reinhart, Carmen, 1996. "Capital flows to Latin America : Is there evidence of contagion effects?," Policy Research Working Paper Series 1619, The World Bank.
    7. Eichengreen, Barry & Rose, Andrew & Wyplosz, Charles, 1996. " Contagious Currency Crises: First Tests," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(4), pages 463-484, December.
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    More about this item

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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