Staying Afloat When the Wind Shifts: External Factors and Emerging-Market Banking Crises / Barry Eichengreen, Andrew K. Rose.

Format:

Book

Author/Creator:

Eichengreen, Barry.

Contributor:

National Bureau of Economic Research.

Rose, Andrew K.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6370.

NBER working paper series no. w6370

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Staying Afloat When the Wind Shifts

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1998.

Summary:

We analyze banking crises using a panel of macroeconomic and financial data for more than one hundred developing countries from 1975 through 1992. We find that banking crises in emerging markets are strongly associated with adverse external conditions. In particular Northern interest rates are strongly associated with the onset of banking crises in developing countries, even after taking into account a host of internal macroeconomic factors. A one percent increase in Northern interest rates is associated with an increase in the probability of Southern banking crises of around three percent. Our results also seem insensitive to the effects of differing exchange rate regimes, external debt burdens and domestic financial structures.

Notes:

Print version record

January 1998.