Financial Crises: Explanations, Types and Implications

Stijn Claessens () and Ayhan Kose

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises?currency crises, sudden stops, debt crises, and banking crises?and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

Keywords: Sudden stops; debt crises; banking crises; currency crises; defaults; policy implications; financial restructuring; asset booms; credit booms; crises prediction (search for similar items in EconPapers)
JEL-codes: E32 E5 E6 F44 G01 H12 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2013-02
New Economics Papers: this item is included in nep-ban, nep-cba and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (129)

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https://cama.crawford.anu.edu.au/sites/default/fil ... essens_kose_2013.pdf (application/pdf)

Related works:
Working Paper: Financial Crises: Explanations, Types, and Implications (2013)
Working Paper: Financial Crises Explanations, Types, and Implications (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2013-06

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