|
HKUST Institutional Repository >
Economics >
ECON Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/1783.1/369
|
| Title: | Macroeconomic effects of international financial panics |
| Authors: | Cook, David E.
Devereux, Michael B. |
| Keywords: | Capital outflows
Exchange rate depreciations
Capital market panics |
| Issue Date: | 10-May-2000 |
| Abstract: | This paper explores the macroeconomic effects of capital market panics in a small open economy. The model is motivated by the sudden and dramatic capital outflows from East Asian economies in 1997-1998, which led to sharp exchange rate depreciations, followed by a collapse in the real economy, and a large reversal in the position of the current account. Our interpretation of this event follows the literature on `financial fragility', which points to the problems of the maturity mismatch between short term borrowing and long-term investment projects giving rise to the risk of capital market panics. We go beyond this literature, however, in constructing a complete macro model that can reproduce many of the quantitative features of the Asian crisis. |
| URI: | http://hdl.handle.net/1783.1/369 |
| Appears in Collections: | ECON Working Papers
|
Files in This Item:
| File |
Description |
Size | Format |
|---|
| malayau.pdf | | 2182Kb | Adobe PDF | View/Open |
|
All items in this Repository are protected by copyright, with all rights reserved.
|
