Managing macroeconomic crises
By: Jeffrey A. Frankel, Shang-Jin Wei.
Contributors: Wei, Shang-Jin.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10907; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10907.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Economic stabilization -- Developing countries.; Capital movements -- Developing countries.; Developing countries -- Economic policy.
Description: "This study reviews broadly the experience of the last decade on crisis prevention and management.  It seeks to draw greater attention to policy decisions that are made during the phase when capital inflows come to a sudden stop.  Procrastination - the period of financing a balance of payments deficit rather than adjusting - had serious consequences in some cases.  Crises are more frequent and more severe when short-term borrowing and dollar denomination external debt are high, and foreign direct investment (FDI) and reserves are low, in large part because balance sheets are then very sensitive to increases in exchange rates and short-term interest rates.  If countries that are faced with a fall in inflows adjusted more promptly, rather than stalling for time by running down reserves or shifting to loans that are shorter-termed and dollar-denominated, they might be able to adjust on more attractive terms"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/13/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.