The Next Great Globalization

Mishkin, Frederic S.

doi:10.1515/9781400829446

Cited by 156 publications

(12 citation statements)

References 227 publications

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“…Output growth, on the other hand, recovered rapidly. 2 The rationale for financial openness is that it promotes domestic financial development and growth (Mishkin, 2006). Our findings highlight the importance of a well-regulated, transparent banking system for countries pursuing financial globalization.…”

Section: Introductionmentioning

confidence: 74%

Sudden stops, banking crises and investment collapses in emerging markets

Joyce

Nabar

2009

Journal of Development Economics

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Section: Introductionmentioning

confidence: 74%

Sudden stops, banking crises and investment collapses in emerging markets

Joyce

Nabar

2009

Journal of Development Economics

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“…There is extensive anecdotal evidence that many banks in emerging markets have collapsed during currency crises. The number of banks fell from 32 to 22 in Mexico during the 1994–1995 crisis and from 33 to 20 in South Korea between 1998 and 2002; also, most large Russian banks failed after the 1998 ruble depreciation, and a large number of Argentine banks collapsed after the 2002 peso devaluation (Mishkin, 2006). Banks appear to have been affected directly because their liabilities were more highly dollarized than their assets, and only indirectly by an increased borrowers default risk (see Burnside et al, 2001; Levy‐Yeyati, 2006).…”

Section: Motivationmentioning

confidence: 99%

Twin Crises in Emerging Markets: The Role of Liability Dollarization and Imperfect Competition in Banking

Luca

Olivero

2012

Review Development Economics

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Currency crises in emerging markets have been accompanied by banking crises, with concentration in the market for bank credit increasing after large devaluations. This paper examines how the presence of imperfect competition and liability dollarization in banking shapes the real effects of the just mentioned twin crises. An important gap in the theoretical literature is filled, by being the first paper to provide a model of twin crises in the presence of imperfect competition in banking, and the changes in market structure that occur in the aftermath of crises. Doing so, the analysis is able to reveal that currency devaluations generate more severe twin crises in economies with less competitive banking sectors. This result is consistent with the empirical evidence on the concentration‐fragility view, and it unveils the importance of prudential regulation that focuses on the market structure in banking.

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“…This meant that when their currencies crashed that the real burden of their debt servicing denominated in gold or hard currency soared, in turn increasing the likelihood of a government debt default and insolvency by private firms. This type of crisis, referred to as a "third generation crisis" or a "balance sheet crisis" was at the heart of the Asian crisis of 1997 (Mishkin 2006). It was also an important part of the story in the pre-1914 era of globalization according to Bordo and Meissner (2006).…”

Section: Emerging Market Country Crises Versus Advanced Country Crisesmentioning

confidence: 99%

Growing up to Financial Stability

Bordo

2008

Economics

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Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This lecture revisits the evidence on the incidence and severity of different varieties of financial crises within the context of globalization then (pre-1914) and now (1980 to the present). I then discuss the determinants of emerging market crises from the perspective of the recent balance sheet approach. This approach puts at center stage the importance of financial development. I then peel the onion back further and consider the "deep" institutional determinants of financial development and their relationship to financial stability. I conclude by conjecturing about the ways countries learn from their financial crises to improve their institutions and grow up to financial stability. JEL: F4, G2, N1, O1.

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The Next Great Globalization

Cited by 156 publications

References 227 publications

Sudden stops, banking crises and investment collapses in emerging markets

Sudden stops, banking crises and investment collapses in emerging markets

Twin Crises in Emerging Markets: The Role of Liability Dollarization and Imperfect Competition in Banking

Growing up to Financial Stability

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