Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises
This article analyzes how external crises spread across countries. The authors analyze the behavior of four alternative crisis indicators in a sample of 20 countries during three well-known crises: the 1982 debt crisis, the 1994 Mexican crisis, and...
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| Format: | Journal Article |
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Washington, DC: World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/05/17737281/crisis-transmission-evidence-debt-tequila-asian-flu-crises http://hdl.handle.net/10986/17443 |
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okr-10986-174432021-04-23T14:03:29Z Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises De Gregorio, José Valdés, Rodrigo O. ACCOUNTING AGRICULTURE ANNUAL GROWTH ASSETS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISES BANK LENDING BILATERAL TRADE BUDGET DEFICIT CAPITAL CONTROL CAPITAL CONTROLS CAPITAL INFLOWS CAPITAL MOVEMENTS CAPITAL TRANSACTIONS COMPETITIVE DEVALUATION COMPETITIVE DEVALUATIONS CONSTANTS CONSUMER PRICE INDEX COUNTRY CREDIT CREDIT BOOM CREDIT BOOMS CREDIT RATING CREDIT RATINGS CREDIT RISK CRISES IN EMERGING MARKETS CRISIS CONTAGION CROSS-COUNTRY EXPERIENCE CURRENCY CURRENCY CRISES CURRENCY CRISIS CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS DATA AVAILABILITY DEBT COMPOSITION DEBT CRISIS DEBT MATURITY DEBT STRUCTURE DEPENDENT VARIABLE DEPOSITS DEPRECIATION DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES EMERGING MARKETS EQUILIBRIUM ERROR TERM EXCHANGE ARRANGEMENTS EXCHANGE RATE EXCHANGE RATE FLEXIBILITY EXCHANGE RATE REGIMES EXCHANGE RESTRICTIONS EXPLANATORY VARIABLE EXTERNAL ASSETS EXTERNAL DEBT EXTERNAL SHOCK EXTERNAL SHOCKS FINANCIAL CRISES FINANCIAL INTEGRATION FINANCIAL SECTOR FINANCIAL SUPPORT FISCAL BALANCE FIXED EXCHANGE RATE FIXED EXCHANGE RATE REGIME FLEXIBLE EXCHANGE RATE FLEXIBLE EXCHANGE RATE REGIMES FOREIGN DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET GDP GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATE INDUSTRIAL COUNTRIES INFLATION INSTITUTIONAL INVESTOR INTERDEPENDENCE INTEREST RATE SHOCK INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANK LENDING INTERNATIONAL CRISES INTERNATIONAL CRISIS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INTEREST INTERNATIONAL INTEREST RATE INTERNATIONAL RESERVES INTERNATIONAL SETTLEMENTS LEADING INDICATORS M1 M2 MACROECONOMIC CONDITIONS MACROECONOMIC VARIABLE MARKET COMPETITION MARKET PRESSURE MARKET PRESSURES MATURITY STRUCTURE MISALIGNMENT MONETARY FUND MONEY SUPPLY NARROW BANDS OUTPUT OUTPUT COLLAPSE OVERVALUATION PARTICULAR COUNTRY PRICE INDEX PRIVATE CREDIT RATE OF GROWTH RATE OF INFLATION REAL DEPRECIATION REAL EXCHANGE RATE REAL EXCHANGE RATE APPRECIATION REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATES REAL INTEREST REAL INTEREST RATE REAL SHOCKS RETURNS SHOCK PROXY SHORT-TERM DEBT STANDARD DEVIATION STOCK MARKET SURRENDER REQUIREMENT TEQUILA CRISIS TIME HORIZON TOTAL CREDIT TOTAL DEBT TOTAL EXPORTS TRADE PATTERN TRANQUIL TIMES TRANSMISSION MECHANISM TRANSMISSION MECHANISMS VOLATILITY VULNERABILITY WEIGHTS This article analyzes how external crises spread across countries. The authors analyze the behavior of four alternative crisis indicators in a sample of 20 countries during three well-known crises: the 1982 debt crisis, the 1994 Mexican crisis, and the 1997 Asian crisis. The objective is twofold: to revisit the transmission channels of crises, and to analyze whether capital controls, exchange rate flexibility, and debt maturity structure affect the extent of contagion. The results indicate that there is a strong neighborhood effect. Trade links and similarity in pre-crisis growth also explain (to a lesser extent) which countries suffer more contagion. Both debt composition and exchange rate flexibility to some extent limit contagion, whereas capital controls do not appear to curb it. 2014-03-27T21:16:14Z 2014-03-27T21:16:14Z 2001-05 Journal Article http://documents.worldbank.org/curated/en/2001/05/17737281/crisis-transmission-evidence-debt-tequila-asian-flu-crises World Bank Economic Review http://hdl.handle.net/10986/17443 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Journal Article East Asia and Pacific South Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AGRICULTURE ANNUAL GROWTH ASSETS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISES BANK LENDING BILATERAL TRADE BUDGET DEFICIT CAPITAL CONTROL CAPITAL CONTROLS CAPITAL INFLOWS CAPITAL MOVEMENTS CAPITAL TRANSACTIONS COMPETITIVE DEVALUATION COMPETITIVE DEVALUATIONS CONSTANTS CONSUMER PRICE INDEX COUNTRY CREDIT CREDIT BOOM CREDIT BOOMS CREDIT RATING CREDIT RATINGS CREDIT RISK CRISES IN EMERGING MARKETS CRISIS CONTAGION CROSS-COUNTRY EXPERIENCE CURRENCY CURRENCY CRISES CURRENCY CRISIS CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS DATA AVAILABILITY DEBT COMPOSITION DEBT CRISIS DEBT MATURITY DEBT STRUCTURE DEPENDENT VARIABLE DEPOSITS DEPRECIATION DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES EMERGING MARKETS EQUILIBRIUM ERROR TERM EXCHANGE ARRANGEMENTS EXCHANGE RATE EXCHANGE RATE FLEXIBILITY EXCHANGE RATE REGIMES EXCHANGE RESTRICTIONS EXPLANATORY VARIABLE EXTERNAL ASSETS EXTERNAL DEBT EXTERNAL SHOCK EXTERNAL SHOCKS FINANCIAL CRISES FINANCIAL INTEGRATION FINANCIAL SECTOR FINANCIAL SUPPORT FISCAL BALANCE FIXED EXCHANGE RATE FIXED EXCHANGE RATE REGIME FLEXIBLE EXCHANGE RATE FLEXIBLE EXCHANGE RATE REGIMES FOREIGN DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET GDP GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATE INDUSTRIAL COUNTRIES INFLATION INSTITUTIONAL INVESTOR INTERDEPENDENCE INTEREST RATE SHOCK INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANK LENDING INTERNATIONAL CRISES INTERNATIONAL CRISIS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INTEREST INTERNATIONAL INTEREST RATE INTERNATIONAL RESERVES INTERNATIONAL SETTLEMENTS LEADING INDICATORS M1 M2 MACROECONOMIC CONDITIONS MACROECONOMIC VARIABLE MARKET COMPETITION MARKET PRESSURE MARKET PRESSURES MATURITY STRUCTURE MISALIGNMENT MONETARY FUND MONEY SUPPLY NARROW BANDS OUTPUT OUTPUT COLLAPSE OVERVALUATION PARTICULAR COUNTRY PRICE INDEX PRIVATE CREDIT RATE OF GROWTH RATE OF INFLATION REAL DEPRECIATION REAL EXCHANGE RATE REAL EXCHANGE RATE APPRECIATION REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATES REAL INTEREST REAL INTEREST RATE REAL SHOCKS RETURNS SHOCK PROXY SHORT-TERM DEBT STANDARD DEVIATION STOCK MARKET SURRENDER REQUIREMENT TEQUILA CRISIS TIME HORIZON TOTAL CREDIT TOTAL DEBT TOTAL EXPORTS TRADE PATTERN TRANQUIL TIMES TRANSMISSION MECHANISM TRANSMISSION MECHANISMS VOLATILITY VULNERABILITY WEIGHTS |
| spellingShingle |
ACCOUNTING AGRICULTURE ANNUAL GROWTH ASSETS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISES BANK LENDING BILATERAL TRADE BUDGET DEFICIT CAPITAL CONTROL CAPITAL CONTROLS CAPITAL INFLOWS CAPITAL MOVEMENTS CAPITAL TRANSACTIONS COMPETITIVE DEVALUATION COMPETITIVE DEVALUATIONS CONSTANTS CONSUMER PRICE INDEX COUNTRY CREDIT CREDIT BOOM CREDIT BOOMS CREDIT RATING CREDIT RATINGS CREDIT RISK CRISES IN EMERGING MARKETS CRISIS CONTAGION CROSS-COUNTRY EXPERIENCE CURRENCY CURRENCY CRISES CURRENCY CRISIS CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS DATA AVAILABILITY DEBT COMPOSITION DEBT CRISIS DEBT MATURITY DEBT STRUCTURE DEPENDENT VARIABLE DEPOSITS DEPRECIATION DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES EMERGING MARKETS EQUILIBRIUM ERROR TERM EXCHANGE ARRANGEMENTS EXCHANGE RATE EXCHANGE RATE FLEXIBILITY EXCHANGE RATE REGIMES EXCHANGE RESTRICTIONS EXPLANATORY VARIABLE EXTERNAL ASSETS EXTERNAL DEBT EXTERNAL SHOCK EXTERNAL SHOCKS FINANCIAL CRISES FINANCIAL INTEGRATION FINANCIAL SECTOR FINANCIAL SUPPORT FISCAL BALANCE FIXED EXCHANGE RATE FIXED EXCHANGE RATE REGIME FLEXIBLE EXCHANGE RATE FLEXIBLE EXCHANGE RATE REGIMES FOREIGN DEBT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET GDP GLOBALIZATION GROSS DOMESTIC PRODUCT GROWTH RATE INDUSTRIAL COUNTRIES INFLATION INSTITUTIONAL INVESTOR INTERDEPENDENCE INTEREST RATE SHOCK INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANK LENDING INTERNATIONAL CRISES INTERNATIONAL CRISIS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INTEREST INTERNATIONAL INTEREST RATE INTERNATIONAL RESERVES INTERNATIONAL SETTLEMENTS LEADING INDICATORS M1 M2 MACROECONOMIC CONDITIONS MACROECONOMIC VARIABLE MARKET COMPETITION MARKET PRESSURE MARKET PRESSURES MATURITY STRUCTURE MISALIGNMENT MONETARY FUND MONEY SUPPLY NARROW BANDS OUTPUT OUTPUT COLLAPSE OVERVALUATION PARTICULAR COUNTRY PRICE INDEX PRIVATE CREDIT RATE OF GROWTH RATE OF INFLATION REAL DEPRECIATION REAL EXCHANGE RATE REAL EXCHANGE RATE APPRECIATION REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATES REAL INTEREST REAL INTEREST RATE REAL SHOCKS RETURNS SHOCK PROXY SHORT-TERM DEBT STANDARD DEVIATION STOCK MARKET SURRENDER REQUIREMENT TEQUILA CRISIS TIME HORIZON TOTAL CREDIT TOTAL DEBT TOTAL EXPORTS TRADE PATTERN TRANQUIL TIMES TRANSMISSION MECHANISM TRANSMISSION MECHANISMS VOLATILITY VULNERABILITY WEIGHTS De Gregorio, José Valdés, Rodrigo O. Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises |
| geographic_facet |
East Asia and Pacific South Asia |
| description |
This article analyzes how external
crises spread across countries. The authors analyze the
behavior of four alternative crisis indicators in a sample
of 20 countries during three well-known crises: the 1982
debt crisis, the 1994 Mexican crisis, and the 1997 Asian
crisis. The objective is twofold: to revisit the
transmission channels of crises, and to analyze whether
capital controls, exchange rate flexibility, and debt
maturity structure affect the extent of contagion. The
results indicate that there is a strong neighborhood effect.
Trade links and similarity in pre-crisis growth also explain
(to a lesser extent) which countries suffer more contagion.
Both debt composition and exchange rate flexibility to some
extent limit contagion, whereas capital controls do not
appear to curb it. |
| format |
Journal Article |
| author |
De Gregorio, José Valdés, Rodrigo O. |
| author_facet |
De Gregorio, José Valdés, Rodrigo O. |
| author_sort |
De Gregorio, José |
| title |
Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises |
| title_short |
Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises |
| title_full |
Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises |
| title_fullStr |
Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises |
| title_full_unstemmed |
Crisis Transmission : Evidence from the Debt, Tequila, and Asian Flu Crises |
| title_sort |
crisis transmission : evidence from the debt, tequila, and asian flu crises |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/05/17737281/crisis-transmission-evidence-debt-tequila-asian-flu-crises http://hdl.handle.net/10986/17443 |
| _version_ |
1764433162100801536 |