Financial frictions are a central element of most of the models that the literature on emerging
markets crises has proposed for explaining the Sudden Stop'phenomenon. To date, few …

We develop a multiple asset rational expectations model of asset prices to explain financial
market contagion. Although the model allows contagion through several channels, our focus …

Over the last 20 years, some financial events, such as devaluations or defaults, have
triggered an immediate adverse chain reaction in other countries--which we call fast and …

Abstract Changes in sovereign debt ratings and outlooks affect financial markets in
emerging economies. They affect not only the instrument being rated (bonds) but also …

The epidemic of capital-markets crises that hit emerging economies in the 1990s displayed
the empirical regularities of a phenomenon that Calvo (1998) labeled a “sudden stop.” 1 …

The paper examines the case for dollarization in emerging market economies. It is claimed
that dollarization becomes an attractive monetary regime when account is taken of recent …

We analyze yield spreads on sovereign bonds issued by emerging markets, using modern
data from the 1990s and newly collected historical data on bonds traded in London during …

The latter half of the 1990s was punctuated by a series of financial and currency crises: the
Mexican peso collapse in 1994; the East Asian crisis in 1997–98; the Russian collapse in …

The nature of globalization and global economic change has been a subject of immense
academic research during the past two decades. The Janus face of globalization, however …

This paper reviews the theory of balance-of-payments crises, and its implications for
identifying potential leading indicators of crises. It discusses and evaluates three different …