Contagion of International Financial Crises: The Case of Mexico

  • Santiago Bazdresch
  • Alejandro M. Werner

Abstract

Mexico was the epicenter of the 1994–1995 Tequila crisis in which many new features of emerging markets’ crises made their appearance. In particular, the issue of whether contagion was present caught the attention of several authors (For example, Valdés (1997), Sachs, Tornell and Velasco (1996) and Calvo and Reinhart (1996)). Since then, the Asian, Russian and Brazilian crises have motivated numerous papers that suggest that writing about contagion might also be contagious.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Baig, Taimur and Ilan Goldfajn (1998). “Financial Markets Contagion in the Asian Crisis,” International Monetary Fund Working Paper no. 98 /155.Google Scholar
  2. Banco de México, The Mexican Economy,Mexico City, Various Issues.Google Scholar
  3. Calvo, Sarah and Carmen Reinhart (1996). “Capital Flows to Latin America: Is there Evidence of Contagion Effects?” in Guillermo Calvo, Morris Goldstein, Eduard Hochreiter (eds).Private Capital Flows to Emerging Markets after the Méxican Crisis ( Washington, D.C.: Institute for International Economics. )Google Scholar
  4. Corsetti, Giancarlo, Paulo Pesenti and Nouriel Roubini (1998). “What Caused the Asian Currency and Financial Crisis.” NBER Working Paper no. 6833 and 6834.Google Scholar
  5. Forbes, Kristin and Roberto Rigobon. (1999). “No Contagion, Only Interdependence: Measuring Stock Market Co-movements.” NBER Working Paper no. 7267.Google Scholar
  6. Garcés, D. (1999). “Determinación del nivel de precios y la dinamica inflacionaria en México.” Bank of Mexico mimeo, December.Google Scholar
  7. Hamilton, James (1994). Time Series Analysis. New Jersey: Princeton University Press.Google Scholar
  8. Jochum, Christian and Laura Kodres (1998). “Does the Introduction of Futures on Emerging Market Currencies Destabilize the Underlying Currencies?” IMF Working Paper no. 98 /13.Google Scholar
  9. Kodres, Laura and Matthew Pritsker (1998). “A Rational Expectations Model of Financial Contagion.” Federal Reserve Board Discussion Series no. 1998–48.Google Scholar
  10. Masson, Paul. (1998). “Contagion: Monsoonal Effects, Spillovers, and Jumps Between Multiple Equilibria,” IMF Working Paper no. 98/l42-EA.Google Scholar
  11. Rigobon, Roberto (1999). “On the Measurement of the International Propagation of Shocks.” NBER Working Paper no. 7354.Google Scholar
  12. Sachs, Jeffrey, Aaron Tomell and Andrés Velasco (1996). “Financial Crisis in Emerging Markets: The Lessons from 1995.” NBER Working Paper no. 5576.Google Scholar
  13. Valdés, Rodrigo (1997). “Emerging Markets Contagion: Evidence and Theory.” Documentos de Trabajo del Banco Central, Central Bank of Chile.Google Scholar

Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Santiago Bazdresch
    • 1
  • Alejandro M. Werner
    • 1
  1. 1.Banco de MéxicoMexico

Personalised recommendations