Working Paper: NBER ID: w7139
Authors: Aaron Tornell
Abstract: The cross-country variation in the severity of the crisis was largely determined by three fundamentals: the strength of the banking system, the real appreciation, and the international liquidity of the country. We also find that the rule that links fundamentals to the crisis severity has been the same in both the Tequila and Asian crises.
Keywords: No keywords provided
JEL Codes: E44; F32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| weak banking system (F65) | crisis severity (H12) |
| real appreciation (D46) | crisis severity (H12) |
| low international liquidity (F30) | crisis severity (H12) |
| weak banking system and severe real appreciation (F65) | low international liquidity (F30) |
| preceding lending boom and real appreciation (F65) | crisis severity (H12) |