Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212519 
Year of Publication: 
2003
Series/Report no.: 
BOFIT Discussion Papers No. 5/2003
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
The study examines the causes of financial crises in 31 emerging market countries during 1980 2001.It estimates a probit model using 23 macroeconomic and financial sector variables.Traditional variables such as unemployment and inflation, as well as several indicators of indebtedness such as private sector liabilities and the foreign liabilities of banks explain currency crises rather well, and it appears currency crises occur in tandem with banking crises.Indeed, in emerging market countries the vulnerability to crisis is exacerbated by situations involving large liabilities that permit sudden capital outflows.Increases in indebtedness followed the liberalization of capital flows and domestic financial sectors. Author
Subjects: 
Currency crises
Banking crises
Emerging markets
Liberalization
Probit model
JEL: 
F31
F32
F41
F47
Persistent Identifier of the first edition: 
ISBN: 
951-686-858-4
Document Type: 
Working Paper

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