Contagion in financial markets / Friedrich L. Sell.

Format:

Book

Author/Creator:

Sell, Friedrich L.

Language:

English

Subjects (All):

Financial crises.

International finance.

Physical Description:

xvi, 225 pages : illustrations ; 24 cm

Place of Publication:

Cheltenham, UK ; Northampton, MA, USA : Edward Elgar, [2001]

Contents:

1.3 On the incapability of making an appropriate diagnosis and prognosis of financial market crises 8

2. Contagious Financial Crises in Economic History and in the Recent Past 12

2.2 Earlier contagious financial market crises in the history of industrialized countries 14

2.3 The Chilean currency and banking crisis of 1982 20

2.4 The currency crises of EMS member countries in the early 1990s 22

2.5 The financial market crises in Mexico, Asian countries and the Czech Republic in the mid-1990s 34

2.6 The crises of the rouble and the real in the late 1990s: a case of 'pure contagion'? 47

3. Explaining the Onset of Financial Market Crises in Emerging Markets 61

3.2 The basic model (following Sachs, Tornell and Velasco) 63

3.3 Introducing credit rationing and limited liability into the Sachs, Tornell and Velasco model of 1996 67

3.4 A reformulation of the Sachs, Tornell and Velasco model 75

3.5 Selective empirical evidence 82

4. 'Contagion': What is it and Who is Susceptible to it? 90

4.2 Contagion in recent economic literature 92

4.3 Contagion in epidemiology 101

4.4 A reinterpretation of 'contagion' as a term in economics 113

4.5 Immunization and/or prevention against contagion? 118

5. A Simple Model of Contagious Financial Crises 122

5.2 The contagious setup 125

5.3 The first-victim country 127

5.4 Contagion: the two

country-two-period problem 149

5.5 Empirical evidence 157

6. The New International Financial Architecture 167

6.2 Reforms on the national level 169

6.3 Reforms on the international level 172

6.4 Reforms on the supranational level 186

7.1 Can the questions raised in the introduction to this book be answered? 195

7.2 What type of minimum information does the IMF need for an adequate prediction of a contagious financial crisis? 197

7.3 What sort of additional 'early warning indicators' emerge from the results of this book? 198

7.4 What else could be useful to predict contagious financial crises more effectively? 199

7.5 How useful/harmful can early warning indicators be? 200

7.6 Open questions for future research 202.

Notes:

Includes bibliographical references (pages 205-222) and index.

ISBN:

1840645644

OCLC:

46731219