Exchange rate regimes and the cross-country distribution of the 1997 financial crisis |
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| Authors: | KB Grier RM Grier |
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| Institution: | University of Oklahoma, 725 Elm Ave., Norman, OK 73071, USA Tel: 1 405 325 3748 Fax: 7 405 325 5842 E-mail:;University of Oklahoma, 725 Elm Ave., Norman, OK 73071, USA Tel: 1 405 325 3748 Fax: 7 405 325 5842 E-mail: |
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| Abstract: | 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. |
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