Mutual Fund Investment in Emerging Markets: An Overview

  • Graciela Kaminsky
  • Richard Lyons
  • Sergio Schmukler


The crises initiated in Mexico in 1994, Thailand in 1997, and Russia in 1998 had strong spillover effects in their regions and around the world. As speculative attacks brought down long-standing pegs, the attacked countries were driven into some of the deepest recessions in modem times. Even countries that successfully defended their currencies were scarred by deep recessions due to the tight monetary conditions implemented to fight the attacks. These crises were not confined to national borders, nor were they confined to specific regions. The Thai crisis engulfed, within days, Indonesia, Malaysia, and the Philippines. The Russian crisis spread to countries as far apart as Brazil and Pakistan. Even developed countries were affected, with the Russian default and devaluation reverberating through financial markets in Germany, Great Britain, and the United States.


Foreign Direct Investment Mutual Fund Institutional Investor Pension Fund Hedge Fund 


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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Graciela Kaminsky
    • 1
  • Richard Lyons
    • 2
  • Sergio Schmukler
    • 3
  1. 1.George Washington UniversityUSA
  2. 2.University of CaliforniaBerkeleyUSA
  3. 3.The World BankUSA

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