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Crisis spillovers in emerging market economies: interlinkages, vulnerabilities and investor behaviour

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  • Michael Chui
  • Simon Hall
  • Ashley Taylor

Abstract

Many emerging market economy (EME) financial crises in the 1990s quickly spread to other countries. By contrast, spillovers from the Argentina crisis in 2001-02 appear to have been much more limited. Why do some crises spread widely and others do not? In this paper the joint importance of intra-EME linkages, related country-specific vulnerabilities and investor behaviour are stressed. This framework provides insights into some potential reasons behind the differing extent of spillovers in two case studies - Asia 1997-98 and Argentina 2001-02. It also highlights the need for further analysis of the less easily measurable elements of the framework, in particular changes in investor behaviour.

Suggested Citation

  • Michael Chui & Simon Hall & Ashley Taylor, 2004. "Crisis spillovers in emerging market economies: interlinkages, vulnerabilities and investor behaviour," Bank of England working papers 212, Bank of England.
  • Handle: RePEc:boe:boeewp:212
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    File URL: http://www.bankofengland.co.uk/research/Documents/workingpapers/2004/WP212.pdf
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    2. Moritz Cruz & Bernard Walters, 2008. "Is the accumulation of international reserves good for development?," Cambridge Journal of Economics, Oxford University Press, vol. 32(5), pages 665-681, September.
    3. Ionuț NICA, 2020. "Simulation of financial contagion effect using the NetLogo software at the level of the banking network," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(624), A), pages 55-74, Autumn.
    4. Luis F. Brunstein, 2008. "Policies to reduce instability," Revista de Economía del Caribe 007100, Universidad del Norte.

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