Currency Crises and The Real Economy: The Role of Banks

Piti Disyatat ()

No 01/49, IMF Working Papers from International Monetary Fund

Abstract: This paper shows that the quality of banks within each country is one of the important factors that can account for the fact that developing economies tend to suffer more severe output contractions in the wake of a currency crisis than more mature economies. In particular, countries with a banking sector whose balance sheets are healthy, in terms of having high net worth and low foreign currency exposure, are much less likely to suffer a contraction in the wake of an unexpected depreciation.

Keywords: Financial crisis; Banks; Financial sector; External debt; Economic models (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cba, nep-fdg, nep-fmk and nep-ifn
View list of references View citations in EconPapers

Downloads: (external link)
http://www.imf.org/external/pubs/ft/wp/2001/wp0149.pdf (application/pdf)

Related works:
Journal Article: Currency crises and the real economy: The role of banks (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:imf:imfwpa:01/49

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund
Address: International Monetary Fund, Washington, DC USA
Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().