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CiteWeb id: 19990000065

CiteWeb score: 5825

DOI: 10.1257/aer.89.3.473

In the wake of the Mexican and Asian currency turmoil, the subject of financial crises have come to the forefront of academic and policy discussions. This paper analyzes the links between banking and currency crises. The authors find that problems in the banking sector typically precede a currency crisis--the currency crisis deepens the banking crisis, activating a vicious spiral; financial liberalization often precedes banking crises. The anatomy of these episodes suggests that crises occur as the economy enters a recession, following a prolonged boom in economic activity that was fueled by credit, capital inflows, and accompanied by an overvalued currency.

The publication "The twin crises: The causes of banking and balance of payments problems" is placed in the Top 10000 of the best publications in CiteWeb. Also in the category Economics it is included to the Top 1000. Additionally, the publicaiton "The twin crises: The causes of banking and balance of payments problems" is placed in the Top 100 among other scientific works published in 1999.
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