DP8264 Currency and Financial Crises of the 1990s and 2000s
|Author(s):||Assaf Razin, Steven Rosefielde|
|Publication Date:||February 2011|
|Keyword(s):||deregulation, liquidity trap, shadow banking|
|JEL(s):||E0, F0, N0|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=8264|
We survey three distinct types of financial crises which took place in the 1990s and the 2000s: 1) The credit implosion leading to severe banking crisis in Japan; 2) The foreign reserves? meltdown triggered by foreign hot money flight from frothy economies with fixed exchange rate regimes of developing Asian economies, and 3) The 2008 worldwide debacle rooted in financial institutional opacity and reckless aggregate demand management, epi-centered in the US, that spread almost instantaneously across the globe, mostly through international financial networks.