The Corporate Sector Dynamics of Systemic Financial Crises

Mark Stone

No 2000/114, IMF Working Papers from International Monetary Fund

Abstract: This paper puts together a set of stylized facts of the corporate sector dynamics of systemic financial crises based on recent crisis episodes with a view to identifying the key issues and their policy implications. The evidence suggests that corporate crisis dynamics arc triggered by a cutoff of capital inflows and are amplified into an historically severe recession by exchange rate depreciation, high interest rates, and current account adjustment. The adverse consequences of these dynamics can be forestalled and assuaged by policies that improve monitoring of the corporate sector and boost nonbank sources of corporate financing.

Keywords: WP; credit crunch; bank; financing; monetary policy; crisis; Financial crises; corporate restructuring; crisis dynamics; commercial paper; bank dominance; crisis episode; trough month; rate of return; crisis-prevention externality; crisis prevention policy; A. crisis dynamics; nominal exchange rate; nonbank capital markets; Corporate sector; Financial statements; Systemic crises; Capital inflows; East Asia (search for similar items in EconPapers)
Pages: 43
Date: 2000-06-01
References: Add references at CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=3650 (application/pdf)

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:imf:imfwpa:2000/114

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 International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().