Risk factors in international financial crises: early lessons from the 2008-2009 turmoil
This paper analyses the global transmission of the recent economic and financial crisis as a function of macroeconomic factors such as per capita gross domestic product, current-account positions prior to the crisis, exchange-rate regimes, inflation prior to the crisis and financial openness. It finds that large current-account imbalances (both surpluses and deficits) were a risk factor in the current global economic turmoil. It also finds that countries that use currency boards have suffered much more from the crisis than countries with other exchange-rate regimes. Financial openness appears to have increased the risk of experiencing a deep recession, while higher inflation prior to the crisis seems to have mitigated its impact.
|Date of creation:||Jul 2010|
|Date of revision:|
|Publication status:||Published in Berlin Working Papers on Money, Finance, Trade and Development, July 2010|
|Contact details of provider:|| Web page: http://finance-and-trade.htw-berlin.de|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eswar S. Prasad & Raghuram G. Rajan & Arvind Subramanian, 2007.
"Foreign Capital and Economic Growth,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 38(1), pages 153-230.
- Eswar S. Prasad & Raghuram G. Rajan & Arvind Subramanian, 2007. "Foreign Capital and Economic Growth," NBER Working Papers 13619, National Bureau of Economic Research, Inc.
- Prasad, Eswar & Rajan, Raghuram G. & Subramanian, Arvind, 2007. "Foreign Capital and Economic Growth," IZA Discussion Papers 3186, Institute for the Study of Labor (IZA).
- Sebastian Dullien, 2009. "Central Banking, Financial Institutions And Credit Creation In Developing Countries," UNCTAD Discussion Papers 193, United Nations Conference on Trade and Development.
- Maurice Obstfeld & Kenneth Rogoff, 1995.
"The mirage of fixed exchange rates,"
Working Papers in Applied Economic Theory
95-08, Federal Reserve Bank of San Francisco.
When requesting a correction, please mention this item's handle: RePEc:mtf:wpaper:1001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Dr. Sebastian Dullien)
If references are entirely missing, you can add them using this form.