EconPapers    
Economics at your fingertips  
 

Responses of Monetary Authorities in Emerging Economies to International Financial Crises: What Do We Really know?

Jean-Pierre Allegret ()

European Research Studies Journal, 2012, vol. XV, issue 3, 3-32

Abstract: This paper analyses policy options available for emerging economies to cope with the financial crises. A seminal paper on this question has been published by Kaminsky et al. (2005). Their main conclusion was that developing countries exhibit pro-cyclical fiscal and monetary policies, amplifying the destabilizing effects of capital inflows. The global financial crisis of 2008-09 had led to a renewed interest of the analysis concerning economic policies responses in emerging countries to financial crises. A growing number of studies have provided new empirical evidences according to which emerging economies tend to adopt more frequently counter-cyclical policies to face crises. The main purpose of this paper is to survey the literature on policy responses in emerging countries to financial crises. More precisely, we identify what are the main factors explaining the behavior of monetary policy during financial crises. Two main lessons can be drawn. On the one hand, initial conditions matter. In other words, the ability to face financial crises depends on pre-crisis vulnerabilities. On the other hand, the currency mismatch appears as one of the main impediments to conduct countercyclical monetary policies.

Keywords: Monetary Policy; Monetary Authorities; Emerging Economies; International Financial Crises (search for similar items in EconPapers)
JEL-codes: E52 F41 F62 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.ersj.eu/repec/ers/papers/12_3_p1.pdf (application/pdf)

Related works:
Working Paper: Responses of Monetary Authorities in Emerging Economies to International Financial Crises: What Do We Really Know? (2012) Downloads
Working Paper: Responses of monetary authorities in emerging economies to international financial crises: what do we really know? (2012)
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: https://EconPapers.repec.org/RePEc:ers:journl:v:xv:y:2012:i:3:p:3-32

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().

 
Page updated 2019-08-20
Handle: RePEc:ers:journl:v:xv:y:2012:i:3:p:3-32