List of Contributors, Indexes

This PDF is a selection from a published volume from the National Bureau of Economic Research

Volume Title: Preventing Currency Crises in Emerging Markets

Volume Author/Editor: Sebastian Edwards and Jeffrey A. Frankel, editors

Volume Publisher: University of Chicago Press

Volume ISBN: 0-226-18494-3

Volume URL: http://www.nber.org/books/edwa02-2

Conference Date: January 2001

Publication Date: January 2002

Title: List of Contributors, Indexes

Author: Sebastian Edwards, Jeffrey A. Frankel

URL: http://www.nber.org/chapters/c10649 Contributors

Joshua Aizenman Giancarlo Corsetti Department of Economics Department of Economics Social Sciences I University of Rome, III University of California, Santa Cruz Via Ostiense, 139 Santa Cruz, CA 95064 00154, Rome Italy

Eduardo Borensztein Robert Dekle Room 9-700 Department of Economics International Monetary Fund University of Southern California 700 19th Street NW Los Angeles, CA 90089 Washington, DC 20431 Michael P. Dooley Charles W. Calomiris Deutsche Bank Graduate School of Business 31 West 52nd Street Columbia University NYC01-1204 3022 Broadway Street, Uris Hall New York, NY 10019 New York, NY 10027 Rudi Dornbusch Luis Felipe Céspedes Department of Economics, E52-357 Research Department Massachusetts Institute of Technology International Monetary Fund 50 Memorial Drive 700 19th Street Cambridge, MA 02139 Washington, DC 20431 Sebastian Edwards Roberto Chang Anderson Graduate School of Business Department of Economics University of California, Los Angeles Rutgers University 110 Westwood Plaza, Suite C508 75 Hamilton Street Box 951481 New Brunswick, NJ 08901-1248 Los Angeles, CA 90095-1481

755 756 Contributors

Martin Feldstein Amartya Lahiri National Bureau of Economic Department of Economics Research University of California, Los Angeles 1050 Massachusetts Avenue Bunche Hall 8357 Cambridge, MA 02138 Box 951447 Los Angeles, CA 90095-1477 Kristin J. Forbes Sloan School of Management, Jorge Braga de Macedo E52-446 Development Centre Massachusetts Institute of Organization for Economic Technology Cooperation and Development 50 Memorial Drive 94, rue Chardon-Lagache Cambridge, MA 02142-1347 75016 Paris France

Jeffrey A. Frankel Enrique G. Mendoza Kennedy School of Government Department of Economics Harvard University Room 305, Social Science Building 79 JFK Street Duke University, Box 90097 Cambridge, MA 02138 Durham, NC 27708-0097

Linda S. Goldberg Paolo Pesenti Research Department, 3rd Floor International Research Function Federal Reserve Bank of New York Federal Reserve Bank of New York 33 Liberty Street 33 Liberty Street New York, NY 10045 New York, NY 10045

Simon Johnson Carmen M. Reinhart Sloan School of Management, Research Department, Room 10-700H E52-562 International Monetary Fund Massachusetts Institute of 700 19th Street NW Technology Washington, DC 20431 50 Memorial Drive Cambridge, MA 02142-1347 Vincent Raymond Reinhart Division of International Finance Ethan Kaplan Board of Governors of the Federal Department of Economics Reserve System University of California at Berkeley 20th Street and Constitution Avenue 549 Evans Hall NW Berkeley, CA 94720 Washington, DC 20551

Kenneth Kletzer Roberto Rigobon Department of Economics Sloan School of Management, E52-447 Social Sciences I Massachusetts Institute of Technology University of California, Santa Cruz 50 Memorial Drive Santa Cruz, CA 95064 Cambridge, MA 02142-1347

Anne O. Krueger Dani Rodrik Suite 12-300F Kennedy School of Government International Monetary Fund Harvard University 700 19th Street NW 79 JFK Street Washington, DC 20431 Cambridge, MA 02138 Contributors 757

Liliana Rojas-Suarez Jaume Ventura Institute for International Economics Department of Economics 1750 Massachusetts Avenue NW Massachusetts Institute of Washington, DC 20036-1903 Technology Cambridge, MA 02139 Nouriel Roubini Department of Economics, KMC 7-83 Shang-Jin Wei Stern School of Business Room 10-700 New York University International Monetary Fund 44 West 4th Street 700 19th Street NW New York, NY 10012-1126 Washington, DC 20433

Federico Sturzenegger Alejandro M. Werner Universidad Torcuato Di Tella Bank of Mexico Minones 2177 Av. 5 de Mayo No 18, Piso 4, 1428 Buenos Aires Seccion D Argentina Col. Centro, Deleg. Cuauhtemoc, 06059 Aaron Tornell Mexico DF Department of Economics Mexico University of California, Los Angeles Bunche Hall 8387 Yi Wu Box 951477 Department of Economics Los Angeles, CA 90095-1477 Georgetown University Washington, DC 20057-1036 Carlos A. Végh Department of Economics Jungho Yoo University of California, Los Angeles Center for Economic Information Bunche Hall 8349 Korea Development Institute Box 951477 207-41 Cheongnyangni-dong, Los Angeles, CA 90095-1477 Dongdaemun-ku Seoul, Korea Andrés Velasco Kennedy School of Government Harvard University 79 JFK Street Cambridge, MA 02138

Author Index

Ades, Alberto, 33n12, 70, 127 Barth, James, 535 Agenor, Pierre-Richard, 341, 357, 673n14 Benabou, Roland, 219 Aghion, Philippe, 337, 338, 386, 509, 510n1, Benigno, G., 568n6 544n8, 592, 708n4 Benigno, P., 568n6 Aiyagari, S. Rao, 333, 337, 346, 347, 373, 377 Bernanke, Ben, 337, 386, 508, 514, 560, 563, Aizenman, Joshua, 369, 385, 666n4, 673n14 564, 708n4, 732n1 Alesina, A., 385, 386 Blanchard, Olivier, 27, 745n2 Allen, Franklin, 219, 220, 220n21 Blejer, Mario, 592 Alvarez, F., 667n8, 689n26, 697 Bomﬁm, Antulio, 178n7 Arellano, Manuel, 49 Bond, Stephen, 49 Arias, Eduardo Fernandes, 321 Boone, Peter, 462 Ariyoshi, Akira, 395, 449n7 Borensztein, Eduardo, 138n10, 146t, 592 Athukorala, Prema-chandra, 396n5 Boughton, James M., 614 Atkeson, Andrew, 32, 667n8, 689n26, 697 Boyer, Brian H., 278n7, 280n10 Attanasio, Orazio P., 48, 48n18 Bradley, John, 652 Breach, Alasdair, 462 Bacchetta, Philippe, 36, 337, 338, 386, 509, Brock, W., 443n5 510n1, 544n8, 592, 708n4 Broda, Christian, 592, 594 Backus, D., 570 Brown, Stephen, 222, 249, 250, 266 Bagnoli, Mark, 219 Bruno, Michael, 32 Bai, Chong-En, 462n1 Burnside, C., 509, 520, 522, 673n14, 708n4 Baig, Taimur, 81–82, 279n9, 287n19 Banerjee, Abhijit, 337, 338, 386, 509, 510n1, Caballero, Ricardo, 510, 510n1, 592, 708n4 544n8, 592, 708n4 Cadenillas, A., 689n26 Bank for International Settlements (BIS), Cairncross, Alec, 455 471 Calomiris, Charles W., 732n1, 733n2, 734, Bank Negara Malaysia (BNM), 408n16 737 Bank of Korea, 640, 646, 647, 648 Calvo, Guillermo A., 17, 29, 31, 139, 149, Barberis, Nicholas, 90n18 166, 277, 287n18, 336, 337, 338, 339, Barclay, Michael J., 217n19 340, 349, 350, 378, 379, 507, 509, 525, Bardhan, Pranab, 462n1 559, 560, 561, 562, 565, 566, 569, 592, Barro, Robert J., 48n18, 51, 667, 680n20 663, 666, 667, 667n6, 708n4

759 760 Author Index

Camdessus, Michel, 1–2 Driﬃll, J., 570 Canales-Kriljenko, Jorge Iván, 395, 449n7 Druck, P., 673n13 Caprio, Gerard, 535 Durlauf, S., 443n5 Caramazza, Francesco, 82n4 Dybvig, Phillip, 514, 519 Carlsson, H., 204 Carroll, Christopher D., 337n2, 346 Easley, David, 217n19 Castro, J. F., 663n1 Eaton, Jonathan, 337, 347 Cavallo, Domingo, 595 Edison, Hali, 395, 449n7, 510, 510n1 Central Intelligence Agency (CIA), 492 Edwards, Alejandra, 28, 29 Céspedes, Luis Felipe, 14, 337, 344, 559–60, Edwards, Sebastian, 1, 4, 22n2, 25, 26, 29, 561, 562, 563, 563n4, 576, 589, 591, 31, 48, 54, 56n22, 127, 336, 344, 386, 592, 594, 596 432n1, 673n14 Chakravorti, Sujit, 247–49 Eichenbaum, Martin, 509, 520, 522, 673n14, Chang, Roberto, 14, 31, 337, 344, 510, 514, 708n4 559–60, 559n1, 561, 562, 563, 563n4, Eichengreen, Barry, 5n4, 54, 80, 80n3, 127, 576, 589, 591, 592, 594, 596 244, 244n40, 284, 284n15, 323, 406, Chase Manhattan Bank, 31 510n1, 707n3 Chinn, Menzie, 509, 522, 582n12 Christiano, Lawrence J., 337, 510, 592 Favero, Carlo, 279n9, 287n19 Chu, Ke-Young, 146t Federal Financial Institutions Examinations Chu, Yun-Han, 528, 534 Council (FFIEC), 6 Claessens, Stijn, 466n4 Feldstein, Martin, 420n22 Clarida, Richard H., 133, 166, 569 Fernandez-Arias, Eduardo, 139, 463n3, 468, Cline, William R., 29 484 Cole, Harold L., 366 Financial Stability Forum, 198, 216, 222, Collins, Susan, 531 248, 248n48, 249, 250, 251, 252, 254 Cooper, Richard N., 1, 23 Fischer, Stanley, 29 Corden, Max, 28 Fisher, Irving, 344, 732n1 Correia, I., 669n10 Fleiss, J. L., 56n22 Corsetti, Giancarlo, 7, 22n2, 31, 84, 85n9, Flood, Robert, 169, 510, 512n2, 667n7 198, 204, 207n10, 212n14, 243n39, 509, Forbes, Kristin J., 5, 5n4, 81, 278n7, 279n8, 510n1, 707n3, 708n4 280n10, 287n19, 339 Frank, Charles R., 608n6 Dages, B. Gerard, 174, 178n8 Frankel, Jeﬀrey, 3, 5n4, 12, 25, 26, 52, 54, 57, Dasgupta, Amil, 198, 200, 204, 207n10, 58, 58n27, 59, 135n3, 139, 150, 160, 212n14, 213n17 432n1, 461, 488, 582n12, 592, 594 De Gregorio, José, 82n4, 287n19 Freidman, Eric, 462 Dekle, Robert, 12, 13–14, 528, 531, 533, 650 Freixas, Xavier, 513, 513n3 Demirgüç-Kunt, Asli, 535 French, Kenneth R., 70 Detragiache, Enrica, 535 Frenkel, Jacob, 666n4 Deutsche Bank, 32 Froot, Ken, 323 Diamond, Douglas, 513, 514, 519 Fung, William, 222, 223, 223n28, 244, 246, Diaz-Alejandro, Carlos, 13n6, 508, 509, 553, 249–50 744, 744n1 Furman, Jason, 420n22, 510n1, 559 Dixit, A., 563, 565, 566 Dominguez, Kathryn M., 135n3 Gale, Douglas, 219, 220n21 Dooley, Michael, 3, 13n6, 454–55, 466n4, Galí, J., 569 509, 522, 653 Garber, Peter M., 394n2, 510, 512n2 Doppelhofer, G., 443n5 Garibaldi, P., 673n13 Dornbusch, Rudi, 10–11, 17, 22n2, 138, Gavin, M., 559, 562 138n10, 146t, 150, 150n16, 335n1, 386, Gelos, Gaston, 82n4, 279n9, 287n19, 592 396, 455, 470, 559, 592, 650 Gerlach, Stefan, 83–84 Drazen, Allan, 349, 350, 386, 667n7 Gersovitz, Mark, 337, 347 Author Index 761

Gertler, Mark, 152, 333, 337, 373, 377, 508, 468t, 491, 492, 530, 532, 533, 534–35, 514, 560, 563, 564, 569, 592, 708n4 547–48, 615n27 Giavazzi, Grancesco, 279n9, 287n19 International Trade Center, UN Statistics Gibson, Michael S., 278n7, 280n10 Division, 90 Gilchrist, Simon, 337, 508, 564, 592, 708n4 Ize, Alain, 592 Glick, Reuven, 79n1, 80, 89n16, 101, 127, 287n19 Jarrow, Robert A., 219, 220n20, 220n21 Goetzmann, William, 222, 249, 250, 266 Jeanne, Olivier, 169, 667n7, 720n8 Goldberg, Linda S., 6, 173n2, 174, 178n8 Johnson, Harry G., 23 Goldfajn, Ilan, 81–82, 279n9, 287n19, Johnson, Simon, 395n4, 462 510n1 Johnston, Barry, 394–95, 400n10, 433n3 Goldstein, Morris, 54, 85n8, 133, 284n14 Jomo, K. S., 395, 402, 442n3 Gomez, Terence, 442n3 Jungho Yoo, 14–15 Gorton, Gary, 220, 220n21 Gosh, Atish R., 26 Kamin, Steven B., 1, 24, 29 Gourinchas, Pierre Olivier, 707n3, 722–23 Kaminsky, Graciela L., 54, 82, 85n8, 127, Greenwood, Jeremy, 345 135n3, 139, 160n20, 276, 277, 284n14, Grossman, H., 667, 680n20 321, 339, 395, 559n2, 707n3 Guerra de Luna, Alfonso, 341 Kaplan, Ethan, 10, 449n7, 650 Gupta, Poonam, 85n8 Karolyi, G. Andrew, 323 Gurría, José Angel, 2 Kaufmann, Daniel, 462n1, 475n8 Gust, Christopher, 337, 510, 592 Kaune, Federico, 33n12, 70 Kehoe, P., 667n8, 689n26, 697 Habvermeier, Karl, 395, 449n7 Keynes, John Maynard, 332 Haggard, Stephan, 399n9, 435, 442n3, 532 Kim, Jungshik, 239, 243n38, 568n6 Hahm, Joon-Ho, 613n19, 614n22, 615n26 Kim, Kwang Suk, 608n6 Hamlin, Kevin, 656 Kim, S., 568n6 Hancock, Diana, 187n14 King, Mervyn, 278 Harberger, Arnold, 23 Kinney, Daniel, 174, 178n8 Harrigan, James, 82, 84n5 Kirilenko, Andrei, 395, 449n7 Hartigan, J. A., 201n4 Kisselev, Kate, 595 Harvard Institute for International Devel- Kiyotaki, Nobuhiro, 332, 337, 510, 544, 592 opment, 471 Klein, Michael, 173n2 Hausmann, Ricardo, 463n3, 468, 484, 559, Kletzer, Kenneth, 12, 13–14, 509, 522, 650 562, 592 Koay, S., 449n7 Heckman, James J., 49 Kochhar, Kalpana, 394–95, 397, 400n10, Hercowitz, Zvi, 345 433n3 Hines, James, 462 Kodres, Laura E., 287n18 Holmstrom, Bengt, 513n3, 520 Kremer, M., 745n2 Holtham, Gerald H., 146t Krishnamurty, Arvind, 337, 510, 510n1, Hong, Wontack, 608, 611 592, 708n4 Honore, Bo E., 284 Krueger, Anne O., 14–15, 603n3, 608n6, Hopenhayn, H. A., 385 611n12 Horowitz, Joel L., 284 Krugman, Paul, 1, 13n6, 54, 394, 402, Hsieh, David A., 222, 223, 223n28, 244, 246, 420n22, 509, 510, 510n1, 512n2, 568, 249–50 592, 708n4 Hubbard, R. Glenn, 732n1 Kumar, Praveen, 219, 220n21 Huﬀman, Gregory W., 345 Kumhof, Michael, 510n1 Kyle, Albert S., 219, 220n21 Ichimura, Hidehiko, 49 Kyriazidou, Ekaterini, 284 International Monetary Fund (IMF), 90, 184n12, 198, 222, 244, 246, 249, La Porta, Rafael, 192, 480, 493, 502 254n51, 339, 435, 445, 449n7, 464t, Lahiri, Amartya, 15–16, 667n7, 673 762 Author Index

Lall, Subir, 247n46 Meyer, Bruce D., 402n12 Landerretche, Oscar, 707n3, 722–23 Milesi-Ferretti, Gian Maria, 32, 45, 46–47, Larkin, John, 656 48, 54, 56, 64 Laroque, Guy, 219 Miller, Marcus, 510, 510n1 Laurens, Bernard, 395, 449n7 Miller, R., 443n5 Laursen, Svend, 23 Mishkin, Frederic, 509, 613n19, 614n22, Lee, Charles S., 656 615n26 Lee, Yi-Tsung, 217n19 Mishra, Deepak, 85n8 Leiderman, Leonardo, 29, 139, 149 Mitton, John, 395n4 Leland, Hayne, 732n1 Mody, Ashoka, 323, 462 Leone, Alfredo, 592 Mohamad, Mahathir bin, 441, 442n4, 449 Levine, Ross, 535 Moore, John, 332, 337, 510, 544, 592 Levy, E., 663n1 Moore, Michael, 394–95, 400n10, 433n3 Levy-Yeyati, Eduardo, 169 Moreno, Ramon, 537 Lewis, Karen K., 70, 71, 135n3 Moron, E., 663n1 Lim, Linda, 401 Morris, Stephen, 198, 201n4, 204, 207nn9, Lin, Ji-Chai, 217n19 10, 212n14 Lindgren, Carl-Johan, 534 Morrison, Thomas K., 146t Lipman, Barton L., 219 Muniagurria, M. E., 385 Liu, Olin, 402 Mussa, Michael, 394, 394n1 Liu, Yu-Jane, 217n19 Lizondo, Saul, 127 Natalucci, Fabio, 592 Loayza, Norman, 48 Nelson, William, 178n7 Lopez-de-Silanes, Florencio, 192, 480, 493, Neves, J., 669n10 502 Loretan, Mico, 278n7, 280n10 Obstfeld, Maurice, 7, 24, 25, 26, 27, 366, Loser, Claudio M., 31 509, 563 Low, Linda, 399n9, 435, 442n3 O’Connell, Paul, 323 Luangarum, P., 510, 510n1 O’Hara, Maureen, 217n19, 266 Lucas, R. E., Jr., 384 Organization for Economic Cooperation Ludvigson, Sydney, 347 and Development (OECD), 470, 491, 612n17, 613n18, 650, 651, 653, 654 Macedo, Jorge Braga de, 650, 652 Ostry, Jonathan D., 26 Machlup, Fritz, 23 Otker-Rober, Inci, 394–95, 395, 400n10, Mankiw, N. Gregory, 515n4 433n3, 449n7 Manski, Charles F., 284 Oudiz, G., 561, 570 Marion, Nancy, 369, 385 Masih, Rumi, 127 Paasche, Bernhard, 84n5, 332, 337 Mason, Joseph R., 732n1 Pagés-Serra, C., 559, 562 Masson, Paul, 81, 277 Palmer, David, 174, 174n3, 178n7 Mathieson, David, 244, 244n40 Park, James, 222, 249, 250, 266, 531 Mauro, Paulo, 480 Pearce, E. A., 491 McDermott, C. John, 341, 357 Peek, Joe, 172, 173 McHale, John, 650 Perkins, Dwight, 399, 399n9, 414 McKinnon, Ronald, 133, 135, 166, 467n7, Perri, Fabrizio, 595 510n1, 652, 708n4 Persson, T., 385 Meade, James E., 23, 23n3 Pesenti, Paolo, 7, 22n2, 31, 84n5, 243n39, Mendoza, Enrique G., 8–9, 287n18, 333, 509, 510n1, 707n3, 708n4 338, 341, 344, 344n4, 346, 349, 350, Phelan, C., 589 356, 366, 366nn12, 13, 373, 373n16, Philippon, Thomas, 592 377, 378, 379, 385 Picci, Lucio, 48, 48n18 Metzler, Lloyd, 23 Pill, Huw, 467n7, 510n1, 708n4 Author Index 763

Pomerleano, Michael, 528, 530, 539 Sachs, Jeffrey, 22n2, 24, 31, 420n22, 461, Poterba, James M., 70 462, 510n1, 559, 561, 570, 707n3 Prasad, Eswar S., 341, 357 Sadka, Efraim, 466 PricewaterhouseCoopers, 463, 472, 493 Sahay, Ratna, 82n4, 85n8, 279n9, 287n19 Pritsker, Matthew, 287n18 Sala-i-Martin, Xavier, 48n18, 51, 443n5 Pyle, David, 732n1 Salgado, Ranil, 82n4 Salinas de Gortari, Carlos, 30, 30n8 Radelet, Steven, 31, 420n22, 461, 462, Santaella, Julio, 1, 54 510n1, 559 Schaechter, Andrea, 592, 723, 723n10 Rajan, Raghuram, 192 Schmidt-Hebbel, Klaus, 48 Ramey, Garey, 369, 385 Schmukler, Sergio, 139, 374, 395 Ramey, Valerie A., 369, 385 Schneider, Martin, 337, 708, 732 Razin, Assaf, 25, 26, 32, 45, 46–47, 48, 54, Scorcu, Antonello E., 48, 48n18 56, 64, 466 Scott, Kenneth, 534, 656 Rebelo, Sergio, 509, 520, 522, 669n10, Seasholes, Mark, 323 673n14, 708n4 Seppi, Duane J., 219, 220n21 Reinhart, Carmen M., 3n3, 54, 79n1, 82, Servén, Luis, 48, 139 85n8, 127, 133, 138n8, 138n10, 139, Shadow Financial Regulatory Committee, 146t, 149, 160, 160n20, 166, 276, 277, 734, 737 284n14, 321, 336, 339, 340, 395, 433n2, Shea, Jia-Dong, 532 449n7, 559n2, 562, 592, 663, 666, Sheffrin, Steven M., 26 667n6, 707n3 Shiller, Robert, 736 Reinhart, Vincent Raymond, 3n3, 133 Shin, Hyun Song, 198, 201n4, 204, 207nn9, Reisen, Helmut, 462 10, 212n14, 653 Reserve Bank of Australia, 250–51 Shleifer, Andrei, 90n18, 192, 475n8, 480, Ricci, Luca, 82n4 493, 502 Rigobon, Roberto, 8, 278n7, 279n8, 280, Sleet, C., 589 280n10, 282, 282n13, 290, 297, 302n22, Smarzynska, Beata, 463 321, 324, 339 Smets, Frank, 83–84 Rios-Rull, Jose-Victor, 32 Smith, Charles Gordon, 491 Robischek, E. Walter, 28 Smith, Katherine A., 333, 377, 433n1 Roche, David, 400 Söderlind, P., 574n10 Rochet, Jean-Charles, 513, 513n3 Spiegel, Mark M., 537 Rodriguez, C. A., 673n13 Stachetti, E., 589 Rodriguez, F., 443n5 Stein, E. H., 559, 562 Rodrik, Dani, 10–11, 385, 398n8, 443n5, Stiglitz, Joseph, 420n22, 510n1, 513, 515n4, 449n7, 461, 462, 468, 486, 650 517n6, 559, 563, 565, 566, 732n1 Roger, Scott, 394–95, 400n10, 433n3 Stone, Mark, 592 Rogoff, Kenneth, 24, 25, 26, 27, 134n2, 152, Stulz, René M., 323 162, 563 Sturzenegger, Federico, 169, 663n1 Roldós, Jorge, 337, 510, 592 Summers, Lawrence H., 22, 31 Ronn, Ehud I., 279 Svensson, Lars E. O., 25, 26, 561, 568, 569, Rose, Andrew K., 5n4, 12, 52, 54, 57, 58, 569n8, 572, 600 58n27, 59, 79n1, 80, 80n3, 89n16, 101, 127, 160, 162, 169, 284, 284n15, Tabellini, G., 385, 386 287n19, 406, 461, 488, 510n1, 707n3 Tausig, F., 745 Rosengren, Eric, 172, 173 Tenengauzer, Daniel, 127 Rossi, Marco, 535 Tesar, Linda, 70 Rotemberg, J., 589 Theil, Henri, 276m3 Roubini, Nouriel, 7, 22n2, 31, 150, 243n39, Tille, Cédric, 84n5 509, 510n1, 595, 707n3, 708n4 Tirole, Jean, 513n3, 520 Rudloff, Willy, 491 Todd, Petra, 49 764 Author Index

Tornell, Aaron, 16–17, 22n2, 337, 386, Wadhwani, Sushil, 278 466n6, 510n1, 707n3, 708, 722–23, 723, Warner, Jerold B., 217n19, 466n4 723n10, 732 Weder, Beatrice, 79n1, 82–83, 287n19 Townsend, R., 564 Wei, Shang-Jin, 12, 239, 243n38, 462n1, 463, Transparency International (TI), 471 475n8, 476 Tsang, Donald, 248, 249–50 Weiss, Andrew, 513, 515n4, 517n6, 732n1 Tsatsaronis, Konstantinos, 222, 223n28, 244 Werlang, Sergio, 592 Tzanninis, Dmitri, 394–95, 400n10, 433n3 Werner, Ingrid, 70, 335n1, 592 Westphal, Larry, 608n6 Ubide, Angel, 528, 531, 533 Wheeler, David, 462 Udry, Christopher, 284 Wilcox, James, 187n14 United Nations Conference on Trade and Williams, Ewart S., 31 Development (UNCTAD), 420n22 Williamson, John, 133, 135, 166 Uribe, Martin, 349, 350, 373n16 Williamson, S., 564 U.S. President’s Working Group on Capital Wincoop, Eric van, 36, 83, 84, 85nn7, 9 Markets, 255 Wolf, Martin, 336 Woo, Wing Thye, 26, 399, 399n9, 414 Valdés, Rodrigo, 82n4, 287n19, 510n1, Woodford, M., 566, 567, 569, 589 707n3 World Bank, 30, 59, 90, 464t, 471, 492, 493 Van Damme, E., 204 World Economic Forum, 471, 492, 493 Van Rijckeghem, Caroline, 79n1, 82–83, Wu, Yi, 12 287n19 Wyplosz, Charles, 5n4, 54, 80n3, 127, 284, Van Wijnbergen, Eric, 26 284n15, 406, 707n3 Végh, Carlos A., 15–16, 667, 667n7, 673, 673n14 Yang, Ya-Hwei, 531, 532 Velasco, Andrés, 14, 22n2, 31, 337, 344, Yi, Kei Mu, 83, 84, 85n7, 85n9 398n8, 461, 462, 468, 486, 509, 510, Yuen, Chi-Wa, 466 510n1, 514, 559–60, 559n1, 561, 562, 563, 563n4, 576, 589, 591, 592, 594, Zapatero, F., 689n26 596, 707n3 Zelmer, Mark, 592 Vila, Jean-Luc, 219 Zettelmeyer, Jeromin, 592, 720n8 Vishny, Robert W., 90n18, 192, 475n8, 480, Zhang, Xin, 530, 539 493, 502 Zingales, Luigi, 192 Subject Index

Africa, and effects on data, 4, 74–75 7, 712–13, 720–21, 734; unconditional Argentina: balance sheet effects, 750; cheap bailout guarantees, 706, 712–13, 719, import effect, 106, 107t, 126t; conta- 720–21, 734 gion episode (2000), 3, 78, 126–27, 747; Balance sheet effects: corporate sector and, foreigners desired holdings in, 34t, 37; 748; crises prevention policies and, 17, IMF program (2000), 747 730–31, 732–33, 749–50; currency crises Asian countries: bilateral and third-country and, 707–8, 709f, 744–45; emerging- trade linkages, 82; capital controls market economies and, 14; exchange (1990s), 432–33; contagion episodes, rate regimes and, 14, 17, 560–61, 591– 295–321; corporate reaction to finan- 97; monetary policies and, 705–40; cial crises, 456–57; currency crises nontradables/tradables ratios by coun- (1997), 2, 81–82, 393, 441, 445–46; cur- try, 709f; SS episodes and, 17 rent account deficits, 31; domestic bank Banking systems: in Asian countries, 12–14, regulations and financial crises (1997– 507–57; bailout guarantees and effects 98), 12–14, 507–57; HFs and role in, on, 705, 734–37; capital inflows and, 266; U.S. growth and effects on loans, 520–22, 525; corporate reliance and 7, 173n2, 186t, 187. See also specific borrowing in Asian countries, 528, 530; country corruption and cronyism, 489; currency Australia: HLIs and role in, 199, 222, 250–52 crises and, 522–25, 552–54, 707–8, 710f, 733, 747; economic growth and lending Bailout guarantees: banking system regula- by, 513–20; floating exchange rate tions and, 705, 734–37; currency crises regimes and optimal monetary policy, and effects of, 707, 727–31, 733; debt 673–75; index of exchange rates, inter- denomination risks and, 713–16, 721– est rates and reserve levels, 54–55; regu- 22; domestic banks and, 13, 13n7, 16, lations and financial crises, 12–14, 507– 17; equilibrium dynamics and, 716–18; 57 exchange rate regimes and, 727; growth Brazil: balance sheet effects, 750; contagion and effects of, 730–31; institutional re- episode (1998–99), 2, 21n1, 78, 199; forms and effects on, 723–24, 737; current account deficits (1980s), 28, monetary policies and effects of, 722– 747; HLIs role in, 199; timing of finan- 23; systematic bailout guarantees, 706– cial crises, 749

765 766 Subject Index

Capital controls: corruption and effects on, sheet effects, 17, 730–31, 732–33, 749– 12; equity and FDI, 75; exchange rates 50; capital inflows and, 12; chaebol capi- and, 433; financial crises and effects of, talism and Korean crises (1997–98), 15, 432–36, 443–45, 455–56; IMF pro- 656–57; dollar-denominated debt, 16; grams vs., 753; political issues and, 458; economic variables, 21; exchange rates SS episodes and effects of, 368, 378, and, 17; FDI and, 12; floating exchange 379; stock markets and, 75. See also rate regimes and, 16, 663–703; G3 and specific country U.S. volatility, 159–60, 159t; interest rate Capital inflows: corruption and cronyism, response, 17; reduction of corruption 12, 477–85, 488; crises prevention poli- and, 12; SS episodes and, 9; U.S. banks cies, 12; currency crises and, 461–62, lending practices and, 6–7, 173 488, 522–25; domestic banks and for- Currency crises: costs of, 752–53; country eign, 520–22, 525; FDI and, 12 specific issues, 78–79, 88–89, 128, 504– Chaebol capitalism. See Korea 5; old-style crises vs. new-style crises, Chile, current account deficits (1980s), 1n1, 744–45; vulnerabilities and effects on, 9, 28, 106, 508 89–90, 112, 745–48, 750–52 China, and SCAD (1997), 35 Current account behavior: Asian countries Contagion episodes: bond markets, 8, 81, and, 29; borrowing constraint model, 292, 298–300, 313–15, 331, 334; capital 31–32; capital account liberalization controls and, 438, 455; herding behav- and effects on, 605–6; current account ior and, 650; measurement issues, 269– deficits and, 24; current account rever- 71, 322–23, 324–25, 330–33; nonlinear- sals, 4, 45–52; domestic saving and in- ity and distribution-free techniques, vestments and, 24; economists views 324, 334; parameter stability, 8; pattern on, 22; equilibrium models of friction- of correlation, 321–22; prices vs. vol- less economies and, 4, 22; financial umes, 323; propagation mechanisms, crises and, 52–65, 73–75; intertemporal 274–83, 300–302, 323–24, 331, 334; sta- phenomenon, 24–28; SS episodes and, tistical models, 8, 271–74, 293; stock 343–44; stock adjustments and, 22; markets, 8, 81, 292, 296–98, 302–4; trade flows and, 23–24, 27n7; U.S. cur- trade channels and, 129, 283–91, 311– rent account deficit, 75 13, 320, 331, 334; transmission mecha- Current account deficits: Brazilian crisis nisms, 292–321; variances by country, (1980s), 28; Chile (1980s), 28; currency 309–11, 318–20, 323–24; vulnerabilities crises and, 4, 745–46; current account by countries, 309, 317–18. See also spe- sustainability models, 4, 22, 35t, 70–71; cific country equilibrium adjustment paths, 36–39; fi- Corruption and cronyism: bank loans and, nancial crises and, 21–22, 29, 54, 57–65, 466, 488, 502, 503, 504; capital inflows 65–66; Lawson’s Doctrine and, 28, 30– and, 12, 477–85, 488; corruption index, 31; length of time of, 4; Malaysian crisis 506; currency crises and effects of, 11– (1990–96), 31; Mexican crisis (1981), 28; 12; currency for foreign loans and, 486– Mexican crisis (1992–94), 30, 31; proba- 88; defined, 462, 506; domestic banks bility of currency crises and, 4; Thai cri- and, 12–14, 466, 489; FDI and, 12, 463, sis (1990–96), 31; U.S. sustainability is- 467, 474–77, 488, 502–6; legal system sues, 75; Venezuela crisis (1981), 28 variable, 502–3; loan-FDI ratios, 467– Current account reversals, 4, 45–52, 55–57, 88; monetary policies and, 705n2, 719; 71–72 self-fulfilling expectations by interna- Current account sustainability models, 4, tional creditors and, 462, 488; short- 22, 32–39, 70–71 term loans, 486; third-generation speculative attack model, 13. See also Dollarization schemes, 14, 162, 378, 560–61 specific country Crises prevention policies: bailout guaran- Emerging-market economies: balance sheet tees and, 13, 16, 17, 730–31; balance crises vs. slow motion financial crises, Subject Index 767

743–45; balance sheet effects and, 14; 701, 702; exchange rate fluctuations, boom-bust cycles (1990s), 708, 712–18; 663–66; “fear of floating” hypothesis, capital flows from U.S., 134, 141–43, 592–93; fixed exchange rate policy, 677, 147f, 149, 154f, 155f, 156, 158, 160–62; 682; interest rate and reserves correla- exchange rates of, 134n2; financial tion, 666, 699; intervention optimiza- crises (pre-1990s), 1; floating exchange tion and, 688–96; monetary demand rate regimes and, 663–703; G3 and, 6, shocks responses, 681–88, 697, 699– 152–62, 168–69, 170; growth and U.S. 701, 702, 703; optimal monetary policy economy, 134, 143–52, 156t, 157, 158, model, 666–79, 684–96, 701; pure float- 162; growth by country, 711f; lending ing policy, 677, 682; real shocks vs. practices in U.S., 6–7; monetary poli- monetary shocks, 684, 703; reserves cies (1980s-1990s), 718–30; optimal and exchange rate correlation, 666, 697, monetary policies and, 560–61, 562, 699; sterilized intervention, 677, 683– 568–74, 600, 663–703; systematic 84, 699, 701; wage rigidities component bailout guarantees and effects on, 706– in model, 679–84, 702 7, 712–13, 720–21; unconditional Foreign direct investment (FDI): capital bailout guarantees and effects on, 706, controls and effects of, 10, 396–97, 428, 712–13, 719, 720–21. See also Mone- 428n27; corruption and, 12, 474–77, tary policies; specific country 488, 502, 503, 504, 505–6; crises preven- Equilibrium models of frictionless tion policies and capital inflows from, economies, current account behavior 12; FDI/GDP ratios and effects on cur- and, 4, 22 rency crises, 503; FDI levels and effects Exchange-market pressure (EMP) index, on currency crises, 488, 502, 503, 504, currency crises and, 85–89, 110–16, 130 505–6; GDP ratio and effects on cur- Exchange rate mechanism (ERM) crises, rency crises, 463–66, 503; Malaysian second-generation speculative attack crises (1997–98), 10; portfolio and U.S. model and, 12–13, 199, 265–66 outward capital flows, 481–82, 483 Exchange rate regimes: bailout guarantees and, 727; balance sheet effects and, 14, Goldman Sachs’s GS-SCAD model (1997), 17, 560–61, 591–97; capital controls 32, 34 and, 433; crises prevention policies and, Group Of Three (G3) exchange rate volatil- 16, 17, 663–703; currency crises and, ity: capital flows to emerging-market 745–46; Korean crisis (1997–98), 603– economies, 6, 152, 153f, 156, 158, 4; monetary policies and, 14, 559–62, 160–62, 168–69; emerging-market 579, 599, 600; North-South trade and, economies and, 6, 152–60, 162, 169, 134, 137–40; optimal monetary policy, 170; exchange rates of emerging-market 673–75; SS episodes and, 594; welfare economies, 134n2; growth in emerging- effect and, 562, 586, 589, 592–96. See market economies, 156t, 157, 158, also Floating exchange rate regimes 159t, 162, 163t, 169; portfolio flows to emerging-market economies, 6; target “Fear of floating” hypothesis, 592–93 bands, 133–34, 135–36, 140, 169–70 Finland, income effect during Russian crisis, Group Of Three (G3) interest rate volatility: 106, 107t capital flows in emerging-market First-generation speculative attack model, 1, economies and effects of, 152, 154f, 12, 17 156, 169, 170; welfare effect, 134, 136– Floating exchange rate regimes: clean float- 37, 140, 167–68 ing policy model, 699, 700f; crises prevention policies and, 16, 699–701; de- Hedge funds (HFs): Asian crisis, 266; Aus- fined, 663; dirty floating policy, 677, tralian crisis (1998), 222, 250–52; fi- 682–83; emerging-market economies nancial crises and role of, 197, 199, and, 663–703; exchange rate and inter- 216, 218, 221–27; Hong Kong market est rate correlation, 666, 668, 697, 700– manipulation (1998), 222, 247–49; in- 768 Subject Index

Hedge funds (HFs) (cont.) 34, 536–44, 556; capital account liber- vestors and, 265; Malaysia crisis alization, 605–6; chaebol capitalism, (1997–98), 222, 249–50; New Zealand, 14–15, 199, 601–61; competitiveness in- 222; Singapore, 222; South Africa, 222, dex, 101, 106, 107t, 654–55; corporate 252–53; Thai crisis (1997), 8, 199, 243– governance, 656; corruption and crony- 46; U.K. currency devaluation (1990s), ism, 12, 14–15, 602n1, 604–5; crises 222 prevention policies (1997–98), 15, 656– Highly leveraged institutions (HLIs): Aus- 57; current account behavior (1982– tralian crisis (1998), 199, 222, 250–525; 90), 29; economic growth (1960s- behavior in currency markets, 199, 221– 1990s), 606–13, 650–51; exchange rate 43; Brazilian crisis (1998–99), 199; de- regimes, 603–4; financial variables and fined, 7, 197, 199; ERM and, 12–13, crisis (1997–98), 618–27; IMF adjust- 199, 265–66; financial crises (1997–99), ment program (1997–98), 10, 384–85, 221–27, 253–54; financial crises and 614–17; industrial/financial structure, role of, 197–221, 254–56, 258–64; herd- 651–54; regulatory reforms, 655–56; ing and signaling phenomena, 197–98, timing of financial crises, 749 211–14, 217–18, 219; Hong Kong market manipulation (1998), 7, 8, 199, 215, Large traders/players. See Highly leveraged 247–49; investors and, 198, 218–19, institutions (HLIs) 265; Malaysia crisis (1997–98), 8, 199; Latin America: bilateral and third-country markets effects, 7–8, 214–17, 219–21, trade linkages, 82, 85n9; capital con- 253–54, 267; Mexican peso crisis trols and, 29, 436; contagion episodes, (1994–95), 199; Russian contagion 292–321; growth rate per capita (1980s episode (1998), 199; Thai crisis (1997), and 1990s), 753t; international financial 8, 199; U.S. bond market crisis (1994), crises effects in, 436; intertemporal phe- 199; vulnerabilities of countries and, nomenon effects on current account be- 198, 200, 209–11 havior, 28; U.S. growth and effects on Hong Kong: balance sheet effects, 750; con- loans, 7, 173, 186t, 187, 188 tagion episodes (1997 and 1998), 2; cur- Lawson’s Doctrine, current account deficits rent account behavior (1982–90), 29; and, 28, 30–31, 73 HFs and role in, 247–49; HLIs and role in, 7, 8, 215 Malaysia: bank regulations, 14, 528–34, 537–44; capital controls and financial India’s Second Five Year Plan, 24 crisis (1997–98), 9–10, 11, 393–440, Indonesia, 12, 29, 748 441–58; competitiveness index during International financial institutions: financial Thai crisis, 101, 106, 107t; current ac- crisis and effects of, 424–25, 426f, 436, count behavior (1982–90), 29; current 438–39; trade channels, 5, 77–83, 121 account deficits (1990–96), 31, 437, International Monetary Fund (IMF) pro- 748t; economics and role in financial grams: currency crises and, 750–52, crisis (1997–98), 395, 399, 423–24, 439; 753; Korean crisis (1997–98), 10, 384– FDI and capital controls, 10, 396–97, 85, 614–17; Malaysia crisis (1997–98), 428, 437–38, 457, 458; heterodox ad- 425, 427f, 428, 437, 440; Mexican crisis justment program (1997–98), 10–11; (1992–94), 31; Turkish crisis (2000–01), HFs and role in financial crisis (1997– 747 98), 222, 249–50, 437; HLIs and role in financial crisis (1997–98), 8, 199, 437; Japan, trade linkages and export competi- IMF-style policies and role in financial tion with U.S., 81–82 crisis (1997–98), 425, 427f, 428, 437, 440; interest rates role in financial crisis Korea: balance sheet effects, 748; banking (1997–98), 438; international financial system and chaebol capitalism, 627–37, institutions and financial crisis (1997– 638, 649; bank regulations, 14–15, 528– 98), 424–25, 426f, 438–39; macroeco- Subject Index 769

nomics of, 446–48; nonperforming Poland, income effect during Russian crisis, loans and role in financial crises (1997– 106, 107t 98), 748; political role in financial crisis Portfolio diversification model, country lia- (1997–98), 395–96, 423–24, 428, 437, bilities and, 71, 703 439, 441–42, 454–55; social issues and role in financial crisis (1997–98), 438, Russia: balance sheet effects, 750; contagion 440, 457, 458; time-shifted difference- episode (1998–99), 2, 21n1, 78, 81, 199, in-differences methodology (1997–98), 294t, 295–99; timing of financial crises, 396–98, 402–6; timing of financial 749 crises (1997–98), 406–14, 428, 429; trade linkages and financial crisis Second-generation speculative attack (1997–98), 438; vulnerability to finan- model, 3, 12–13, 17 cial crises, 444, 451–53, 456, 458 Self-fulfilling expectations by international Mexico: balance sheet effects, 750; business creditors, corruption and, 462, 488 cycle model, 341, 342t, 388–99; conta- Singapore: balance sheet effects, 750; contagion episodes, 294, 296, 297t, 298, 299; gion episodes (1997 and 1998), 2; cor- corruption and cronyism, 12; currency ruption and loan-FDI ratios, 467–68, collapses in, 746; current account 469; current account behavior (1982– deficits (1980s and 1990s), 28, 30, 31; 90), 29; domestic bank regulations and foreigners desired holdings, 34t, 37; financial crises, 528–30, 533, 534–35, peso crises (1994–95), 1–2, 16, 71–72, 537, 538–44; HFs and role in, 222 81, 199; portfolio investment and cur- South Africa, HFs and role in, 222, 252–53 rent account deficits (1992–94), 30; SS Spillovers effects: financial crises and, 81, episodes, 340, 388–99; timing of finan- 83, 173 cial crises, 749 Sudden stop (SS) episodes: asset-pricing Monetary policies: bailout guarantees and features, 373–78; balance sheet effects, effects on, 722–23; balance sheet effects 17; business cycle model with liquidity and, 705–40; boom cycles and, 720–27; constraints, 343–49; capital controls commitment issues and, 572t, 574, 576– and effects on, 368, 378, 379, 384; com- 79; corruption and cronyism and, petitive equilibrium and business cycle 705n2, 719; debt denomination risks transmission mechanism, 350–54; and, 721–22; economic model, 562–68, credit issues, 337–38, 344, 351, 354, 384; 600; emerging-market economies current account behavior, 386; defined, (1980s-1990s), 718–30; exchange rate 17, 335–38, 378; dollarization schemes, regimes and, 14, 559–62, 579, 599, 600; 378, 384; exchange rate regimes and, financial regulations and, 725–26; for- 594; financial crises and effects of, 8–9, eign banks and role in, 726; inflation 75; macroeconomic volatility and, 339– targeting, 582–86, 587f, 588f; welfare 43; prices and, 339, 340–41, 386–87; effect and, 572, 579, 582, 586, 599–600 quantitative analysis of business cycles, 354–73; welfare effect, 366–69, 370f, New Zealand: HLIs and role in, 222, 467– 373, 379, 385–87, 388 68, 469 Sustainable current account deficits North-South trade: exchange and interest (SCAD), country liabilities and, 32, 34, rate volatility, 134, 137–40; exports/im- 35, 71 ports, 145t Taiwan: contagion episodes (1997, 1998), 2; Optimal monetary policies, emerging mar- domestic bank regulations and finan- ket economies and, 560–61, 562, 568– cial crises, 528–34, 537, 538–44; eco- 74, 600, 663–703 nomic growth (pre-1990s), 606n5; timing of financial crises, 749 Philippines, current account behavior Thailand: attack on Thai baht (1997), 8, (1982–90), 29, 748t 199, 243–46; capital controls (1997), 770 Subject Index

Thailand (cont.) and, 78, 82–83, 85–86, 89–90, 108, 456; corruption and loan-FDI ratios, 119–21, 162 467–68, 469; current account deficits Turkey, financial crisis (2000–01), 3, 747, 749 (1980s and 1990s), 29, 31, 748t; domestic bank regulations and financial United Kingdom (U.K.), HFs and currency crises, 14, 528–34, 536–44, 556; HLIs devaluation (1990s), 222 and role in, 7, 8, 81; nonperforming United States (U.S.): capital flows to loans, 746 emerging-market economies, 134, 141– Third-generation speculative attack model: 43, 147f, 149, 150t, 154f, 155f, 156, corruption issues in Asian countries 158, 160–62; FDI and portfolio flows, (1997–98), 13; defined, 3; financial 143; growth of emerging-market econ- crises and, 522–23, 552, 554, 555, 708; omies, 134, 143–52, 156t, 157, 158, 162; SS episodes and, 17 portfolio data and capital flows, 481– Trade channels: cheap import effect, 5, 79, 82, 483 85, 101–9, 110n26, 112, 117, 119; com- United States (U.S.) bank lending practices: petitive effects, 79, 85, 101, 104–5t, characteristics of banks and interna- 108–10, 112, 117, 119; competitiveness tional exposure, 172, 174–82, 191; indicators, 5; contagion episodes and, emerging-market economies and effects 129, 311–13; currency devaluation and, of, 6–7, 171–74, 188–89, 193–95; for- 83–84; impact of trade linkages on, 84, eign claims of banks, 172–73, 178–79, 127–28; income effect, 5, 79, 85, 101–9, 182–85; growth in U.S. and effects on, 110n26, 112, 117, 119; international fi- 7, 173n2, 185–87, 188, 191; macroecon- nancial institutions effects on, 5, 77–83, omy of foreign countries and effects on, 121; spillovers effects and, 81, 83, 173 7; regression analysis, 185–88; trade Trade linkages: bilateral and third-country linkages and export competition with trade linkages, 82; binary-probit Japan, 81–82 model, 80; correlation to financial Uruguay, corruption and loan-FDI ratios, flows, 79, 82n4; financial linkages, 82– 467–68, 469 83, 112, 120, 438; measurements across countries, 79; model, data set and sta- Venezuela, current account deficits (1981), 28 tistics for measurement of, 80–81, 89– 101, 120, 129; regression estimates, Welfare effect: exchange rate regimes and, 101–8, 120; responses to exchange- 562, 586, 589, 592–96; G3 interest rate market pressure and, 112, 117–19, 127– volatility, 134, 136–37, 140, 167–68; 28; sensitivity tests, 81, 108–12; stock monetary policies and, 572, 579, 582, markets and effects of, 78, 81, 112, 120, 586, 587t, 599–600; SS episodes, 366– 128–30; vulnerability to financial crises 70, 373, 379, 385–87, 388