International Financial Contagion

  • Stijn Claessens
  • Kristin J. Forbes

Table of contents

  1. Front Matter
    Pages i-xi
  2. Overview: The Theory and Empirics of Contagion

    1. Front Matter
      Pages 1-1
    2. Stijn Claessens, Rudiger Dornbusch, Yung Chul Park
      Pages 19-41
    3. Kristin Forbes, Roberto Rigobon
      Pages 43-66
    4. Matt Pritsker
      Pages 67-95
  3. Specific Mechanisms Driving Contagion

    1. Front Matter
      Pages 97-97
    2. José De Gregorio, Rodrigo O. Valdés
      Pages 99-127
    3. Barry Eichengreen, Galina Hale, Ashoka Mody
      Pages 129-155
    4. Graciela Kaminsky, Richard Lyons, Sergio Schmukler
      Pages 157-185
    5. Garry J. Schinasi, R. Todd Smith
      Pages 187-221
  4. Case Studies of Contagion

    1. Front Matter
      Pages 223-223
    2. Taimur Baig, Ilan Goldfajn
      Pages 267-299
    3. Santiago Bazdresch, Alejandro M. Werner
      Pages 301-328
  5. Implications for Policy and the International Financial Architecture

    1. Front Matter
      Pages 405-405
    2. Roberto Chang, Giovanni Majnoni
      Pages 407-430

About this book

Introduction

No sooner had the Asian crisis broken out in 1997 than the witch-hunt started. With great indignation every Asian economy pointed fingers. They were innocent bystanders. The fundamental reason for the crisis was this or that - most prominently contagion - but also the decline in exports of the new commodities (high-tech goods), the steep rise of the dollar, speculators, etc. The prominent question, of course, is whether contagion could really have been the key factor and, if so, what are the channels and mechanisms through which it operated in such a powerful manner. The question is obvious because until 1997, Asia's economies were generally believed to be immensely successful, stable and well managed. This question is of great importance not only in understanding just what happened, but also in shaping policies. In a world of pure contagion, i.e. when innocent bystanders are caught up and trampled by events not of their making and when consequences go far beyond ordinary international shocks, countries will need to look for better protective policies in the future. In such a world, the international financial system will need to change in order to offer better preventive and reactive policy measures to help avoid, or at least contain, financial crises.

Keywords

ASEAN East Asia Financial Market Investment Portfolio

Editors and affiliations

  • Stijn Claessens
    • 1
  • Kristin J. Forbes
    • 2
  1. 1.The World BankUSA
  2. 2.Massachusetts Institute of TechnologyUSA

Bibliographic information

  • DOI https://doi.org/10.1007/978-1-4757-3314-3
  • Copyright Information Springer-Verlag US 2001
  • Publisher Name Springer, Boston, MA
  • eBook Packages Springer Book Archive
  • Print ISBN 978-1-4419-4876-2
  • Online ISBN 978-1-4757-3314-3
  • About this book