Template-type: ReDif-Paper 1.0
Author-Name: Bruinshoofd Allard
Author-Name: Candelon Bertrand
Author-Name: Raabe Katharina 
Author-workplace-name: METEOR
Title: Banking Sector Strength and the Transmission of Currency Crises
Abstract: We show that, complementary to trade and financial linkages, the strength of the bankingsector helps explain the transmission of currency crises. Specifically, we demonstrate thatthe Mexican, Thai, and Russian crises predominantly spread to countries with weaknesses intheir banking sectors. At the same time, the role of banking sector strength varies per crisis;where the Mexican crisis spread to countries with a strong presence of foreign banks indomestic credit provision, the Thai crisis disproportionately contaminated countries wherethe banking sector was most sensitive to currency realignments, wh ile the Russian crisisspread to countries with inefficiencies in the banking sector.
Keywords: macroeconomics ; 
Series: Research Memoranda
Creation-Date: 2005
Number: 023
File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:62abb253-8d56-47f2-8173-8abba64ac84c/datastreams/ASSET1/content
File-Format: application/pdf
File-Size: 88909
Handle: RePEc:unm:umamet:2005023