This paper discusses the theoretical and policy debate on the Crisis in South East Asia. After contrasting competing interpretations of the crisis, the paper presents stylized facts about fundamental imbalances in the economies of the region before the currency collapse. Then, it reviews current theories of currency and financial instability, assessing them as interpretive schemes of the crisis...

Recent emerging market experience highlights that, in general, banking crises begin before currency crises. While empirical research is yet to establish the direction of causality, BOP crises have been interpreted and modeled only as consequence of financial sector meltdowns in the recent crisis literature. The evidence points out that equity and real estate prices decline well in advance of BO...

This paper examines volatility spillovers between the stock and currency markets of ten Asian economies in the period 2003 to 2014. To carry out this analysis, a multivariate asymmetric GARCH model is used. In general, our results present evidence of bidirectional volatility spillovers between both markets, independently of the individual country’s level of development. Additionally, our findin...

This paper investigates the contribution of fundamentals to the persistence of currency crises by identifying the determinants of high volatility in the exchange market pressure index (empi) for some new EU member states. The Markov switching model is utilised to identify the high volatility of empi, and a linear regression analysis is conducted to find the sources of the transition probability...

abstract financial crises and currency instabilities within developing and emerging economies during the last decade had a tremendous impact on the economic performance and increased vulnerability of economies against domestic and foreign shocks. the timing of capital liberalization is one of the significant debates among other issues related to currency instability, and it would be more conven...

This paper surveys the persian monetary crises due to economic sanctions and speculative attacks that leads to high inflation. Economic sanctions are associated with various forms of trade barriers and restriction on financial transactions. Among the most influential sanctions on Iran's oil export and central bank sanctions are noted that their Aims to reduce Iran's oil revenues and Devaluation...