Containing Contagious Financial Crises: The Political Economy of Joint Intervention into the Asian Crisis

Kjell Hausken and Thomas Plumper

Public Choice, 2002, vol. 111, issue 3-4, 209-36

Abstract: The notion of contagion has changed the way scientists perceive financial crises, causing heated debate on the political economy of crisis intervention. Based on a formal model that shows how a financial crisis can escalate and spread contagiously, this article analyzes game-theoretically how a financial market crisis can be contained through intervention. The central focus is the role that international organizations play in overcoming the collective action problem of joint intervention. It is argued that the IMF support programs were helpful, and probably necessary in a class of cases we analyze more carefully, in surpassing the threshold level of collective action. Copyright 2002 by Kluwer Academic Publishers

Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://journals.kluweronline.com/issn/0048-5829/contents link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:pubcho:v:111:y:2002:i:3-4:p:209-36

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11127/PS2

Access Statistics for this article

Public Choice is currently edited by WIlliam F. Shughart II

More articles in Public Choice from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().