The Corporate Sector Dynamics of Systemic Financial Crises
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Summary:
This paper puts together a set of stylized facts of the corporate sector dynamics of systemic financial crises based on recent crisis episodes with a view to identifying the key issues and their policy implications. The evidence suggests that corporate crisis dynamics arc triggered by a cutoff of capital inflows and are amplified into an historically severe recession by exchange rate depreciation, high interest rates, and current account adjustment. The adverse consequences of these dynamics can be forestalled and assuaged by policies that improve monitoring of the corporate sector and boost nonbank sources of corporate financing.
Series:
Working Paper No. 2000/114
Subject:
Balance of payments Capital inflows Corporate sector Economic sectors Financial crises Financial statements Public financial management (PFM) Systemic crises
English
Publication Date:
June 1, 2000
ISBN/ISSN:
9781451853780/1018-5941
Stock No:
WPIEA1142000
Pages:
43
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