Financial Crises Explanations, Types, and Implications

January 30, 2013

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Format: Chicago

Stijn Claessens, and Ayhan Kose. Financial Crises Explanations, Types, and Implications, (USA: International Monetary Fund, 2013) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

Subject: Asset prices, Balance of payments, Banking crises, Currency crises, Financial crises, Prices, Sudden stops

Keywords: Asset booms, Asset price, Asset prices, Banking crises, Banking crisis, Credit booms, Credit crunch, Crises prediction, Crisis probability, Currency crises, Currency crisis, Debt crises, Debt crisis, Defaults, East Asia, Exchange rate, Financial restructuring, Flight to quality, Global, Land speculation, Policy implications, Price bust, Short-term debt, Sudden stops, WP

Publication Details

Pages:

66
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/028
Stock No:

WPIEA2013028
ISBN:

9781475561005
ISSN:

1018-5941

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