Bank Lending and Contagion: Evidence from the Asian Crisis

Carmen Reinhart and Graciela Kaminsky ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes how the crisis in Asia spread during the second half of 1997. We cast our net wide and investigate several possible trade and financial linkages among the Asian economies. We construct a series of “contagion vulnerability indices,” which capture the various manifestations of exposure through trade and finance to the initial crisis country and contrast the predictions of this index to actual outcomes during the Asian crisis. We pay attention to the reversal in bank lending of Japanese and European banks, which were lending heavily to emerging Asia on the eve of the crisis. Daily interest rate and exchange rate data for Indonesia, Malaysia, the Philippines, South Korea, and Thailand are used to assess whether the patterns of causality and interdependence changed as the crisis spread, as well as to answer question of whether interdependence among the Asian economies has changed as the result of the crisis.

JEL-codes: F34 F36 F42 (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (67)

Published in in Takatoshi Ito and Anne Krueger, eds. Regional and Global Capital Flows: Macroeconomic Causes and Consequences, (Chicago: University of Chicago Press for the NBER, 2001). (2001): pp. 73-99

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/7580/1/MPRA_paper_7580.pdf original version (application/pdf)

Related works:
Chapter: Bank Lending and Contagion: Evidence from the Asian Crisis (2001)
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:pra:mprapa:7580

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().