Jump to ContentJump to Main Navigation
The Washington Consensus ReconsideredTowards a New Global Governance$
Users without a subscription are not able to see the full content.

Narcís Serra and Joseph E. Stiglitz

Print publication date: 2008

Print ISBN-13: 9780199534081

Published to Oxford Scholarship Online: May 2008

DOI: 10.1093/acprof:oso/9780199534081.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 17 October 2019

Sudden Stop, Financial Factors, and Economic Collapse in Latin America: Learning from Argentina and Chile 1

Sudden Stop, Financial Factors, and Economic Collapse in Latin America: Learning from Argentina and Chile 1

Chapter:
(p.119) 8 Sudden Stop, Financial Factors, and Economic Collapse in Latin America: Learning from Argentina and Chile1
Source:
The Washington Consensus Reconsidered
Author(s):

Guillermo A. Calvo

Ernesto Talvi

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199534081.003.0008

This chapter shows that the Russian 1998 crisis had a big impact on capital flows to Emerging Market Economies (EMEs), especially in Latin America, and that the impact of the Russian shock differs quite markedly across EMEs. To illustrate this statement, the polar cases of Chile and Argentina are compared. While Chile exhibited a significant economic slowdown after August 1998, it did not suffer the excruciating collapse suffered by Argentina, where even the payments system came to a full stop. This difference is attributed to the fact that Chile is more open to trade than Argentina, and that it appears to suffer much less from balance-sheet currency-denomination mismatch that was rampant in Argentina before the 2002 crisis (due to large domestic liability dollarization). The chapter is essentially descriptive but is in line with and, thus, complements econometric studies like Calvo, Izquierdo, and Mejia (NBER Working Paper 10520). The final section addresses policy issues in light of the chapter's findings and conjectures.

Keywords:   financial crisis, Latin America, liability dollarization, Argentina, Chile, international financial architecture, Emerging Market Economies, Russian 1998 crisis

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .