This paper examines whether a monetary policy tightening (i.e., an increase in the domestic interest rate) was successful in defending the exchange rate from speculative pressures during the Asian financial crisis. We estimate a bivariate VECM for four Asian countries, and improve upon existing...

A principal message of this paper is that external financial crises are not caused by an alert private sector pouncing upon the public sector’s foolish actions such as running an unsustainable fiscal deficit or creating moral hazards. They are better described as private sectors (both domestic...

This paper provides a framework for examining developing-country financial crisis. It is based upon Hyman Minsky's financial fragility thesis and applied to the case of Thailand 1984-1999. There is empirical evidence for the evolution of the Thai economy through the Minskian regimes (hedged...

With the recent events of the large-scale financial crisis in some parts of the world and the slowly declining inflation rate in major OECD countries debt deflation has again become an important topic in economic research. In a model with debt issuing firms, financing their investment, we...

This paper considers financial, operational, solvency, and performance ratios, in order to detect when there were balance sheets’ variations related to the 1994 Mexican currency crisis. Quarterly results for 88 non-financial Mexican companies that survived the crisis are used, and tests for...

This article aims to underline the importance of market liquidity for the stability of the financial system, emphasizing the pivotal role played by liquidity risk in the development of the current financial crisis.

The increased competition on the global market and the shortage of financial resources determined by the financial crisis imposed the international factoring as an alternative for financing for corporations and small and medium enterprises. International factoring eases much of the credit and...

The global financial crisis created new challenges for the countries which have joined the European Union since 2004 and are not yet members of the euro area. 

The main driving force of the financial crisis of 2007-2009 was a rapid deterioration of the trust of private agents in the quality of financial institutions and assets.