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Recessions and Financial Disruptions in Emerging Markets: A Bird´s Eye View

Listed author(s):
  • Stijn Claessens
  • M. Ayhan Kose
  • Marco E. Terrones

This paper provides an overview of the implications of recession and financial disruption episodes in emerging markets. We report three major findings. First, compared to advanced countries, recessions and financial disruptions in emerging markets are often more costly. Second, recessions associated with financial disruption episodes, such as credit crunches, equity price busts and financial crises, tend to be deeper than other recessions in emerging markets. Third, the temporal dynamics of macroeconomic and financial variables around these episodes in emerging markets are different than those in advanced countries. In light of these broad observations, the paper provides a review of recessions and financial market disruptions in Chile

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 585.

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Date of creation: Jun 2010
Handle: RePEc:chb:bcchwp:585
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