Capital Flows and Financial CrisesA Comparative Analysis of East Asia (1997-97) and Argentina (2001-02)
ISSN: 2255-5471
Año de publicación: 2004
Número: 17
Tipo: Documento de Trabajo
Otras publicaciones en: Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales
Resumen
This paper suggests, first, that a simple theoretical framework is useful in explaining financial crises in emerging economies. Second, it reviews the East Asian financial crises of 1997-98 . Third, the paper examines the origins of Argentina¿s crisis of 2001-02. Fourth, it presents a comparative analysis of both crises, highlighting their similarities and differences. Finally, the conclusions point out the drawbacks of both hard and soft pegs respective to a single foreign currency as well as the need for emerging economies to use capital controls in order to avoid the recurrence of financial crises.