THE BALANCE SHEET APPROACH TO FINANCIAL CRISES IN EMERGING MARKETS

Giovanni Cozzi () and Jan Toporowski ()
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Jan Toporowski: Department of Economics, SOAS University of London, UK

No 149, Working Papers from Department of Economics, SOAS University of London, UK

Abstract: This paper contrasts the conventional balance sheet approach to the analysis of economic disturbances in emerging markets with the alternative balance sheet approach that applies and extends Minsky’s Financial Instability Hypothesis to (open) emerging market economies. Earlier balance sheet studies are flawed because of a failure to disaggregate firms’ balance sheets. Examination of such balance sheets in Thailand, Malaysia, Indonesia, Singapore and Hong Kong, suggests that firms in the three crisis countries shared common causes of financial fragility, but the level of financial development and the particular domestic economic and political situation also affected their situation.

Keywords: Emerging Markets; Minsky; Financial Crises; Southeast Asia (search for similar items in EconPapers)
JEL-codes: F34 O12 O16 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2006-10
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: The Balance Sheet Approach to Financial Crises in Emerging Markets (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:soa:wpaper:149

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