|Generate QR code
Open Access
Subscription Access
Financial Crises: Sources, Manifestations, Consequences
https://doi.org/10.32609/0042-8736-2012-4-46-66
Abstract
Building on the empirical studies and financial crises theories, a general framework describing the mechanisms of crisis formation and transmission is developed. Factors of crisis formation include external and internal imbalances, shocks, deficiencies of economic policies and changes in the economic agents behavior (in particular, as concerns price bubbles formation and burst). Channels of crisis transmission include direct links between financial organizations; "negative loss spirals" arising from massive asset sales; increase in uncertainty. The framework is employed to the analysis of several crisis episodes in 1990s and 2000s (Mexican, Asian, Russian and Argentine crises). The channels of crisis transmission to the real economy are also considered. The approaches to measuring both short- and long-term impact of crises on fiscal stability and economic growth are discussed.
References
1. Allen F. et al. Financial Crises: Theory and Evidence // Annual Review of Financial Economics. 2009. Nov. P. 97-116.
2. Allen W. A., Moessner R. The International Propagation of the Financial Crisis of 2008 and a Comparison with 1931 // BIS Working Paper. 2011. No 348.
3. Barro R. J., Ursua J. F. Macroeconomic Crises since 1870 // NBER Working Paper. 2008. No 13940.
4. Bordo M., Eichengreen B., Klingebiel D., Martinez-Peria M. S. Is the Crisis Problem Growing More Severe? // Economic Policy. 2001. Vol. 16, Apr. P. 51-82.
5. Borio C. Ten Propositions about Liquidity Crises // BIS Working Paper. 2009. No 293.
6. Brunnermeier M. K. Deciphering the Liquidity and Credit Crunch 2007-08 // Journal of Economic Perspectives. 2009. Vol. 23, No 1. P. 77-100.
7. Cavallo A. F., Cavallo E. A. Are Crises Good for Long-Term Growth? The Role of PoliticalInstitutions // Inter-American Development Bank Research Department Working Paper. 2008. No 643.
8. Cecchetti S. G., Kohler M., Upper C. Financial Crises and Economic Activity // NBER Working Paper. 2009. No 15379.
9. Claessens S. et al. The Global Financial Crisis: How Similar? How Different? How Costly? // Tusiad-Koc University Economic Research Forum Working Paper. 2010. No 1011.
10. Daniel B. Exchange Rate Crises and Fiscal Solvency / University at Albany, SUNY, Department of Economics // Discussion Paper. 2010. No 08-09.
11. Disyatat P. Currency Crises and Foreign Reserves: A Simple Model // IMF Working Paper. 2001. No 01/18.
12. Frankel J. A. Mundell-Fleming Lecture: Contractionary Currency Crises in Developing Countries // IMF Staff Papers. 2005. Vol. 52, No 2. P. 149-192.
13. Furfine C. Interbank Exposures: Quantifying the Risk of Contagion // Journal of Money, Credit and Banking. 2003. Vol. 35. P. 111-128.
14. Ghosh A. et al. Fiscal Fatigue, Fiscal Space and Debt Sustainability in Advanced Economies// NBER Working Paper. 2011. No 16782.
15. Kaminsky G. L., Reinhart C. M. The Twin Crises: The Causes of Banking and Balance-of-Payments Problems // FRS International Finance Discussion Papers. 1996. No 544.
16. Kitano S. A Model of Balance-of- Payments Crises due to External Shocks: Monetary vs. Fiscal Approaches // Bulletin of Economic Research. 2004. Vol. 56, No 1. P. 53-66.
17. Krishnamurthy A. Amplification Mechanisms in Liquidity Crises // NBER Working Paper. 2009. No 15040.
18. Krugman P. A Model of Balance-of-Payments Crises // Journal of Money, Credit and Banking. 1979. Vol. 11, No 3. P. 311-325.
19. Laeven L., Valencia F. Systemic Banking Crises: A New Database // IMF Working Paper. 2008. No 08/224.
20. Lahiri A., Vegh C. Delaying the Inevitable: Optimal Interest Rate Policy and BOP Crises // NBER Working Paper. 2000. No 7734.
21. Lansing K. J. Rational and Near-Rational Bubbles without Drift // FRBSF Working Paper. 2007. No 2007-10.
22. Mishkin F. Understanding Financial Crises: a Developing Country Perspective // NBER Working Paper. 1996. No 5600.
23. Reinhart C., Rogoff K. Banking Crises: An Equal Opportunity Menace // NBER Working Paper. 2008. No 14587.
24. Reinhart C., Rogoff K. This Time Is Different: A Panoramic View of Eight Centuries of Financial Crises // NBER Working Paper. 2008. No 13882.
25. Sturzenegger F., Zettelmeyer J. Haircuts: Estimating Investor Losses in Sovereign Debt Restructurings, 1998-2005 // IMF Working Paper. 2005. No 05/137.
26. Upper C., Worms A. Estimating Bilateral Exposures in the German Interbank Market: Is There a Danger of Contagion? // European Economic Review. 2004. Vol. 48. P. 827-849.
Review
For citations:
Rustamov E. Financial Crises: Sources, Manifestations, Consequences. Voprosy Ekonomiki. 2012;(4):46-66. (In Russ.) https://doi.org/10.32609/0042-8736-2012-4-46-66
Views:
990
Email this article 
