Financial Fragilities in Developing Countries
Models of Banking Crises: Explaining Associations with Output Decline and Financial Liberalization (104KB) / Hisayuki Mitsuo
Understanding Krugman's "Third-Generation" Model of Currency and Financial Crises (106KB) / Hidehiko Ishihara
Tightening monetary policy aiming to avoid a sharp depreciation of nominal exchange rate causes a deflation and makes the balance-sheet problem worse. Expansionary fiscal policy can avoid the crisis only if the government raises a sufficient fund from abroad, but the required amount of fund may be extraordinary large if the borrowing constraint is moderate.
Monetary Policy, International Liquidity and Central Bank Balance Sheet in Emerging Market Economies (224KB) / Masanaga Kumakura
Lessons from Financial Deregulation Policy, Financial Development and Crisis– Case of Indonesia – (95KB) / Masaaki Komatsu