Complutense University Library

Capital flows and financial crises: a comparative analysis of East Asia (1997-1998) and Argentina (2001-2002)


Bustelo Gómez, Pablo (2004) Capital flows and financial crises: a comparative analysis of East Asia (1997-1998) and Argentina (2001-2002). [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 17, 2004, ISSN: 2255-5471 ]

Creative Commons Attribution Non-commercial Share Alike.


Official URL:


El texto sugiere, en primer lugar, que los mecanismos de las crisis financieras en las economías emergentes pueden entenderse con un sencillo marco teórico. En segundo término, repasa brevemente las crisis asiáticas de 1997-98. En tercer lugar, aborda los orígenes de la crisis de Argentina en 2001-02. En cuarto lugar, hace un análisis comparado de ambas crisis, presentando sus similitudes y diferencias. Finalmente, el texto concluye señalando los inconvenientes de los tipos de cambio (tanto fijos como semi-fijos) anclados a una única divisa de referencia así como la necesidad de que las economías emergentes implanten controles de capital para evitar la recurrencia de las crisis.

Resumen (otros idiomas)

This paper suggests, first, that a simple theoretical framework is useful in explaining financial crises in emerging economies. Second, it reviews the East Asian financial crises of 1997-98 . Third, the paper examines the origins of Argentina’s crisis of 2001-02. Fourth, it presents a comparative analysis of both crises, highlighting their similarities and differences. Finally, the conclusions point out the drawbacks of both hard and soft pegs respective to a single foreign currency as well as the need for emerging economies to use capital controls in order to avoid the recurrence of financial crises.

Item Type:Working Paper or Technical Report
Additional Information:

JEL Classification: F31, F32, F34, F43.

Uncontrolled Keywords:Crisis financieras, East Asia, Argentina, Financial crisis, Emerging economies, Exchange rate, Financial markets.
Subjects:Social sciences > Economics > Finance
Series Name:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
ID Code:6841

ALBEROLA, E., LÓPEZ, H. and SERVÉN, L. (2003), “Tango with the Gringo: The Hard Peg and Real Misalignment in Argentina”, mimeo, april, World Bank (also Working Papers, Num. 3322, World Bank, May 2004).

ARESTIS, M. and GLICKMAN, M. (2002), “Financial Crises in Southeast Asia: Dispelling the Illusions the Minskyan Way”, Cambridge Journal of Economics, Vol. 26, Num. 2, pp. 237-60.

BAER, W., ELOSEGUI, P. and GALLO, A. (2002), “The Achievements and Failures of Argentina’s Neo-liberal Economic Policies”, Oxford Development Studies, Vol. 30, Num. 1, pp. 63-85.

BUSTELO, P. (1998), “The East Asian Financial Crises: An Analytical Survey”, ICEI Working Papers, Num. 10, october, Universidad Complutense de Madrid, Madrid.

BUSTELO, P. (2000), “Novelties of Financial Crises in the 1990s and the Search for New Indicators”, Emerging Markets Review, Vol. 1, Num. 3, pp. 229-51.

BUSTELO, P. (2002), “Los orígenes de la crisis financiera en Argentina: una comparación con las crisis asiáticas”, Boletín Económico de ICE, Num. 2715, 7-13 January, pp. 9-14.

BUSTELO, P., GARCÍA, C. and OLIVIÉ, I. (1999), “Global and Domestic Factors of Financial Crises in Emerging Economies: Lessons from the East Asian Episodes (1997-1999), ICEI Working Papers, Num. 16, November, Universidad Complutense de Madrid.

BUSTELO, P., GARCÍA, C. and OLIVIÉ, I. (2000), Crisis financieras en economías emergentes: enseñanzas de Asia oriental, Ediciones Cooperación al Desarrollo, Agencia Española de Cooperación Internacional, Madrid.

CALVO, G., IZQUIERDO, A. and TALVI, E. (2002), “Sudden Stops, the Exchange Rate and Fiscal Sustainability: Argentina’s Lessons,” Working Paper, Num. 469, July, Inter-American Development Bank.

CHANG, R. and VELASCO, A. (2001), “The 1997-98 Liquidity Crisis: Asia versus Latin America”, Working Paper, Num. 120, november, Chile Central Bank.

DE LA TORRE, A., LEVY YEYATI, E. and SCHMUKLER, S. L. (2003), “Living and Dying with Hard Pegs: The Rise and Fall of Argentina’s Currency Board”, Policy Research Working Paper, Num. 2980, January, World Bank.

DESAI, P. (2003), Financial Crises, Contagion and Containment: From Asia to Argentina, Princeton University Press, Princeton, NJ.

EICHENGREEN, B. (2002), Financial Crises and What to Do about Them, Oxford University Press, New York.

ERTURK, K. A. (2001), “Overcapacity and the Asian Financial Crisis”, Journal of Post-Keynesian Economics, Vol. 24, Num. 2, pp. 253-75.

ESQUIVEL, G. and LARRAÍN, F. (1999), “Latin America Confronting the Asian Crisis”, Development Discussion Papers, Num. 681, February, Harvard Institute for International Development, Cambridge, Mass.

GARCÍA, C. (2002), Entradas de capital, gestión macroeconómica y crisis financieras en economías emergentes: Tailandia, Malasia e Indonesia (1987-1997), PhD Dissertation, Universidad Complutense de Madrid, Madrid.

GARCÍA, C. (2003), “Regímenes cambiarios en economías emergentes: algunas ventajas y desventajas”, Boletín Económico de ICE, Num. 2761, 3-16 March, pp. 31-47.

HAUSSMAN, R. and VELASCO, A. (2002), “Hard Money’s Soft Underbelly: Understanding the Argentine Crisis,” mimeo, July, Kennedy School of Government - Harvard University, Cambridge, Mass.

JAYASURIYA, K. and ROSSER A. (2001), “Economic Orthodoxy and the East Asian Crisis”, Third World Quarterly, Vol. 22, Num. 3, pp. 381-396.

KIGUEL, M. A. (2001), “Structural Reforms in Argentina: Success or Failure”, paper presented at the Conference “Current Issues in Emerging Market Economies”, June, Croatian National Bank, Dubrovnik.

KREGEL, J. (1998), “East Asia is Not Mexico: The Difference between Balance of Payments Crises and Debt Deflations”, Working Paper, Num. 235, May, The Levy Economics Institute.

MANEIRO, J. M. (2003), “Currency Boards y estrategias de desinflación: el caso argentino”, in G. Rodríguez Prada (comp.), Tipos de cambio y crisis financieras, Servicio de Publicaciones, Universidad de Alcalá, pp. 165-212.

McKINNON, R. I. and PILL, H. (1999), “Exchange Rate Regimes for Emerging Markets: Moral Hazard and International Overborrowing”, Oxford Review of Economic Policy, Vol. 15, Num. 3, pp. 19-38.

MUSSA, M. (2002), Argentina and the Fund: From Triumph to Tragedy, Institute for International Economics, Washington DC.

NISHIJIMA, S. (2002), “Currency Crises in Asia and Latin America: A Comparison”, mimeo, May, Research Institute for Economic and Business Administration, Kobe University, Kobe.

OLIVIÉ, I. (2002), Globalización financiera y crisis en economías emergentes: análisis teórico y estudio de México (1994) y Corea del Sur (1997), PhD Dissertation, Universidad Complutense de Madrid, Madrid.

PALMA, G. (1998), “Three and a Half Cycles of ‘Mania, Panic and [Asymmetric] Crash’: East Asia and Latin America Compared”, Cambridge Journal of Economics, Vol. 22, Num. 6, pp. 780-808.

PALMA, G. (2000), “The Three Routes to Financial Crises: The Need for Capital Controls”, CEPA Working Papers, Series III, Num. 18, November, New School for Social Research, New York (also in H.-J. Chang, ed., Rethinking Development

Economics, Anthem Press, London, 2003).

PENIDO, M. C. and PRATES, D. M. (2000), “Financial Openness: the Experience of Argentina, Brazil and Mexico”, CEPAL Review, Num. 70, pp. 55-72.

PERRY, G. and SERVÉN, L. (2003), “The Anatomy of a Multiple Crisis: Why Was Argentina Special and What Can We Learn from It”, Policy Research Working Paper, Num. 3081, June, World Bank.

RAJAN, R. S. (2002), “Argentina and East Asia: The Peg Does It Yet Again”, mimeo, January, University of Adelaide.

SPIEGEL, M. M. (2002), “Argentina’s Currency Crisis: Lessons for Asia”, LAEBA Working Paper, Num. 2, December, IADB.

TEUNISSEN, J. J. and AKKERMAN, A. (eds.) (2003), The Crisis That Was Not Prevented: Lessons for Argentina, the IMF and Globalisation, FONDAD, The Hague.

VARELA, F. and JACOBS, G. (eds.) (2002), Crisis cambiarias y financieras. Una comparación de dos crisis, Pirámide, Madrid.

Deposited On:30 Nov 2007
Last Modified:13 Nov 2015 12:51

Repository Staff Only: item control page