The balance sheet approach to financial crises in emerging markets

Arbeitspapier

This paper contrasts the conventional balance sheet approach to the analysis of economic disturbances in emerging markets with the alternative balance sheet approach that applies and extends Minsky's Financial Instability Hypothesis to (open) emerging market economies. Earlier balance sheet studies are found to be flawed because of a failure to disaggregate firms' balance sheets. Examination of such balance sheets in Thailand, Malaysia, Indonesia, Singapore, and Hong Kong suggests that firms in the three crisis countries did share common causes of financial fragility, but that the level of financial development and the particular domestic economic and political situation also affected their situation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 485

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Microeconomic Analyses of Economic Development ; International Lending and Debt Problems
• Subject: Emerging Markets ; Minsky ; Financial Crises ; Southeast Asia

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cozzi, Giovanni ; Toporowski, Jan
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/31468
• Last update: 10.03.2025, 11:42 AM CET