Financial Crises and Contagion in Emerging Market Countries.
Abstract
This study explores why some financial crises appear to be contagious, and why some financial markets in emerging market countries appear to be vulnerable to contagion while others are not. To begin, multicountry crisis episodes for the period January 1989 to August 1997 are identified and analyzed using statistical methods. Next, four informal models of contagion are developed and sets of indicators proposed. Finally, case studies are used to illustrate the usefulness of the models and indicators for explaining the experience of three countries with potentially contagious financial crises. This research was conducted within RAND's National Security Research Division (NSRD) which does work for the U.S. Department of Defense, for other U.S. government agencies, and for other sponsoring institutions.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1998
- Accession Number
- ADA355040
Entities
People
- C. R. Neu
- Daochi Tong
- Julia Lowell
Organizations
- RAND Corporation