International Contagion : Implications for Policy

Chang, Roberto ; Majnoni, Giovanni

World Bank, Washington, DC

关键词: ACCOUNTING;    ADB;    ALTERNATIVE INVESTMENTS;    ANALYTICAL APPROACH;    BALANCE SHEETS;   

DOI  :  10.1596/1813-9450-2306
RP-ID  :  WPS2306

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors try to identify and evaluatethe public policy implications of financial crises. In thismodel, financial contagion can be driven by a combination offundamentals and by self-fulfilling market expectations. Themodel allows the authors to identify different notions ofcontagion, especially the distinction between"monsoonal effects", "spillovers", and"switchers between equilibria". They discuss bothdomestic and international policy options. Domesticpolicies, they say, should be aimed at reducing financialfragility - that is, reducing unnecessary short-term debtcommitments. With explicit commitments, the maturity ofexternal debts should be lengthened. With implicitcommitments, such as private liability guarantees, theyemphasize limiting or eliminating such guarantees, toimprove an economy's international liquidity and reduceits exposure to contagion. Internationally, they stress theneed for improving financial standards, which makes iteasier to assess when a country is subject to differentkinds of contagion. The effectiveness of internationalrescue packages depends on the kind of contagion to which acountry is exposed. Implications: the internationalcommunity should help those countries that are alreadyhelping themselves.