DP10705 The Antecedents and Aftermath of Financial Crises as told by Carlos F. Díaz Alejandro

Author(s): Carmen M. Reinhart
Publication Date: July 2015
Keyword(s):
JEL(s): B26, E5, E6, F3, G01
Programme Areas: International Macroeconomics and Finance
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=10705

Some of the best-known papers of Carlos F. Díaz Alejandro were about Latin America?s crises in the 1980s and 1930s. I will show data, figures and evidence here about the crises in the advanced economies 30 years later that fit the same narrative. His unadulterated words aptly describe modern problems across geographical borders and, in this case, income levels. This attests to his timeless insight and understanding. Because some of the observations he made have general applicability to the study of recurring patterns across crises, I have taken the liberty to label these as lessons. These are primarily lessons about what to avoid.