Phoenix Miracles in Emerging Markets: Recovering without Credit from Systemic Financial Crises

Research, Preprint OPEN
Calvo, Guillermo A.; Izquierdo, Alejandro; Talvi, Ernesto;
(2006)
  • Publisher: Washington, DC: Inter-American Development Bank, Research Department
  • Subject: F41 | F32 | capital flows | Phoenix Miracle | F31 | F34 | Great Depression | Output collapse | systemic crises | Balance of Payments crisis | Output collapse, systemic crises, Balance of Payments crisis, Sudden Stop, capital flows, Phoenix Miracle, credit crunch, Great Depression | credit crunch | Sudden Stop
    • jel: jel:F31 | jel:F41 | jel:F34 | jel:F32
      ddc: ddc:330

Using a sample of emerging markets that are integrated into global bond markets, we analyze the collapse and recovery phase of output collapses that coincide with systemic sudden stops, defined as periods of skyrocketing aggregate bond spreads and large capital flow rev... View more
  • References (11)
    11 references, page 1 of 2

    Bernanke, B., 1995, “The Macroeconomics of the Great Depression: A Comparative Approach,” Journal of Money, Credit and Banking, Vol. 27, No 1, 1-28.

    Calvo, G.A., 1999, “Contagion in Emerging Markets: When Wall Street is a Carrier” in Calvo (2005).

    Calvo, G.A., 2005, Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?, MIT Press, Cambridge, MA.

    Calvo, G.A., Izquierdo A., and Talvi E., 2003, “Sudden Stops, the Real Exchange Rate and Fiscal Sustainability: Argentina's Lessons”, in Alexander V., Mélitz J., von Furstenberg G.M. (Eds.), Monetary Unions and Hard Pegs; Oxford University Press, Oxford, UK, pp. 150--181. Also in Calvo (2005).

    Calvo, G. A., Izquierdo, A., and Mejía, L.F., 2004, “On the Empirics of Sudden Stops: The Relevance of Balance-Sheet Effects” NBER Working Paper 10520.

    Calvo, G. A., and Talvi, E., 2005, “Sudden Stop, Financial Factors and Economic Collapse in Latin America: Learning from Argentina and Chile” NBER Working Paper 11153.

    Calvo, G. A., Izquierdo A., and Loo-Kung R., 2005, “Relative Price Volatility under Sudden Stops: The Relevance of Balance-Sheet Effects” NBER Working Paper 11492, forthcoming in Journal of International Economics.

    Caprio, J., and D. Klingebiel, 2003. “Episodes of Systemic and Borderline Financial Crises”, World Bank.

    Cerra, V., and Chaman Saxena, S., 2005, “Growth Dynamics: The Myth of Economic Recovery”, IMF Working Paper WP/05/147.

    Cole, H., and L. Ohanian, 1999, “The Great Depression in the United States from a Neoclassical Perspective”, Federal Reserve Bank of Minneapolis Quarterly Review, vol 23, No 1, pp. 2-24.

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