We thank Tyler Cowen, Barry Eichengreen, Doug Nelson, Dan Sutter, and Tom Willettt for their comments and suggestions.
Exchange rate regimes and the cross-country distribution of the 1997 financial crisis
Article first published online: 26 MAR 2007
Volume 39, Issue 1, pages 139–148, January 2001
How to Cite
Grier, K. and Grier, R. (2001), Exchange rate regimes and the cross-country distribution of the 1997 financial crisis. Economic Inquiry, 39: 139–148. doi: 10.1111/j.1465-7295.2001.tb00056.x
- Issue published online: 26 MAR 2007
- Article first published online: 26 MAR 2007
We study variations in the severity of the 1997 financial crisis in a sample of 25 developing countries. We use both currency depreciation and stock market returns as crisis measures. Our key findings are that countries that started 1997 with an exchange rate peg experienced significantly greater currency depreciation and significantly lower stock returns than would be predicted from the levels of various macroeconomic indicators.