Macroeconomic Impact of the Financial Crisis on Armenia
As a small, open economy with a small export sector, Armenia has experienced a large amount of stress from the financial crisis. The government exited a peg-like exchange rate regime after a drain of foreign reserves. The loss of reserves was put to loss of revenues from mining exports, but can also be put to the effects of global financial crisis on remittance inflows. Worldwide, the World Bank expects remittances to fall from US$305 billion in 2008 to $290 billion in 2009. In this paper I explore the effect of global crisis on the loss of reserves supporting the monetary system. Bank balance sheets expanded rapidly and, though small relative to GDP, accepted many assets tied to real estate. Banksï¿½ asset-liability mismatches have their root cause in changes to the flow of hard currency brought on by the crisis.
|Date of creation:||01 Jul 2009|
|Date of revision:||14 Aug 2009|
|Contact details of provider:|| Postal: 386 Stewart Hall, 720 4th Ave S, St. Cloud, MN 56301-4498|
Phone: (320) 308-2227
Fax: (320) 308-2228
Web page: http://www.stcloudstate.edu/economics/
More information through EDIRC
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.:
- Holger Floerkemeier & Era Dabla-Norris, 2007. "Bank Efficiency and Market Structure: What Determines Banking Spreads in Armenia?," IMF Working Papers 07/134, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:scs:wpaper:0901. 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: (King Banaian)
If references are entirely missing, you can add them using this form.