In recent decades, developments in the financial sector have played a major role in shaping
macroeconomic outcomes in a wide range of countries. Financial developments have …

Financial crises Lessons from the last 120 years The crisis problem is one of the dominant
macroeconomic features of our age. Its prominence suggests questions like the following …

We develop a model in which financial crises in emerging markets may occur when
domestic banks are internationally illiquid. Runs on domestic deposits may interact with …

In this paper I use a new cross-country data set to investigate the effects of capital mobility
on economic growth. The new indicator of capital mobility used in this analysis is superior to …

Recent theories of crisis put lending booms at the root of financial collapses. Yet lending
booms may be a natural consequence of economic development and fluctuations. So are …

The joint occurrence of banking and currency crises associated with the recent Asian
financial turmoil has drawn renewed attention to the interrelationship between these two …

While the empirical association between a financial institution's, or country's, short-term
borrowing and susceptibility to crises may, in fact, exist, the direction of causality is often …

The role of financial sector development in economic growth has become a major topic of
empirical research in just the last ten years. A standard approach to explaining growth has …

Currency crises that coincide with banking crises tend to share at least three elements. First,
banks have a currency mismatch between their assets and liabilities. Second, banks do not …

Rudi Dornbusch is Ford Professor of Economics and International Management at the
Massachusetts Institute of Technology and a research associate of the National Bureau of …