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Staying Afloat When the Wind Shifts: External Factors and Emerging-Market Banking Crises

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  • Eichengreen, Barry
  • Rose, Andrew K

Abstract

We analyse banking crises using a panel of macroeconomic and financial data for more than 100 developing countries from 1975 through 1992. We find that banking crises in emerging markets are strongly associated with adverse external conditions. In particular, high Northern interest rates are strongly associated with the onset of banking crises in developing countries, even after taking into account a host of internal macroeconomic factors.

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  • Eichengreen, Barry & Rose, Andrew K, 1998. "Staying Afloat When the Wind Shifts: External Factors and Emerging-Market Banking Crises," CEPR Discussion Papers 1828, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1828
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    More about this item

    Keywords

    Country; Developing; Empirical; Interest; Northern; Panel; statistical;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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