Structural Vulnerabilities and Currency Crises
By Swati R. Ghosh, Atisha Ghosh. Social Science Research Network, 2003
110 citations recorded by the source corpus.
This paper examines the role of structural factors – governance and rule of law, corporate sector governance (creditor rights and shareholder rights), corporate financing structure – as well as macroeconomic variables in currency crises. Using a technique known as a binary recursive tree allows for interactions between the various explanatory variables. It is found that structural vulnerabilities play an important role in the occurrence of “deep” currency crises (those with a real GDP growth decline of at least 3 percentage points) and that there are complex interactions between these structural vulnerabilities and macroeconomic imbalances.
View Paper: https://www.semanticscholar.org/paper/a7b5532b0e6276f1788faa3d74036519eedd8df4
How researchers see this paper
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- D. Karim
- Jeffrey A. Frankel
- E. Davis
- George Saravelos
- Mark F. J. Steel
- Lutz Kilian
- F. Betz
- Donghyeon Kim
Citations in the corpus
- Could Early Warning Systems Have Helped To Predict the Sub-Prime Crisis? (2008, background): “…explanation can be found in Breimen et al. (1984) and Steinberg and Colla (1995) and economic applications can be found in Duttagupta and Cashin (2008) who examined banking crises, Manasse et al. (2003) who examined sovereign debt crises and Ghosh and Ghosh (2002) who examined currency crises.”
- Can Leading Indicators Assess Country Vulnerability? Evidence from the 2008-09 Global Financial Crisis (2012, methodology): “…techniques to identify and explain crisis incidence, including the use of binary recursive trees to determine leading indicator crisis thresholds (Ghosh and Ghosh, 2003; Frankel andWei, 2005), artificial neural networks and genetic algorithms to select the most appropriate indicators (Nag and…”