Managing currency crises in emerging markets / edited by Michael P. Dooley and Jeffrey A. Frankel.

Format:

Book

Contributor:

Dooley, Michael P. (Michael Patrick), 1944-

Frankel, Jeffrey A.

National Bureau of Economic Research.

Series:

National Bureau of Economic Research conference report.

A National Bureau of Economic Research conference report

Language:

English

Subjects (All):

Currency question--Developing countries--Congresses.

Currency question.

Foreign exchange rates--Developing countries--Congresses.

Foreign exchange rates.

Financial crises--Developing countries--Congresses.

Financial crises.

Physical Description:

1 online resource (456 p.)

Edition:

1st ed.

Place of Publication:

Chicago : University of Chicago Press, c2003.

Language Note:

English

Summary:

The management of financial crises in emerging markets is a vital and high-stakes challenge in an increasingly global economy. For this reason, it's also a highly contentious issue in today's public policy circles. In this book, leading economists-many of whom have also participated in policy debates on these issues-consider how best to reduce the frequency and cost of such crises. The contributions here explore the management process from the beginning of a crisis to the long-term effects of the techniques used to minimize it. The first three chapters focus on the earliest responses and the immediate defense of a currency under attack, exploring whether unnecessary damage to economies can be avoided by adopting the right response within the first few days of a financial crisis. Next, contributors examine the adjustment programs that follow, considering how to design these programs so that they shorten the recovery phase, encourage economic growth, and minimize the probability of future difficulties. Finally, the last four papers analyze the actual effects of adjustment programs, asking whether they accomplish what they are designed to do-and whether, as many critics assert, they impose disproportionate costs on the poorest members of society. Recent high-profile currency crises have proven not only how harmful they can be to neighboring economies and trading partners, but also how important policy responses can be in determining their duration and severity. Economists and policymakers will welcome the insightful evaluations in this important volume, and those of its companion, Sebastian Edwards and Jeffrey A. Frankel's Preventing Currency Crises in Emerging Markets.

Contents:

Front matter

Contents

Acknowledgments

Introduction

1. Interest Rates and Exchange Rates in the Korean, Philippine, and Thai Exchange Rate Crises

2. Interest Rate Defense against Speculative Attack as a Signal: A Primer

3. Does It Pay to Defend against a Speculative Attack?

4. The International Lender of Last Resort: How Large Is Large Enough?

5. Rescue Packages and Output Losses Following Crises

6. Financial Restructuring in Banking and Corporate-Sector Crises: What Policies to Pursue?

7. On the Fiscal Implications of Twin Crises

8. An Evaluation of Proposals to Reform the International Financial Architecture

9. Recovery and Sustainability in East Asia

10. A Cure Worse Than the Disease? Currency Crises and the Output Costs of IMF-Supported Stabilization Programs

11. IMF and World Bank Structural Adjustment Programs and Poverty

12. Impacts of the Indonesian Economic Crisis: Price Changes and the Poor

Contributors

Author Index

Subject Index

Notes:

Proceedings of a conference held in Monterey, Calif., in March 2001.

Includes bibliographical references and index.

ISBN:

9786611125493

9781281125491

1281125490

9780226155425

0226155420

OCLC:

236345498