Stephen Cecchetti, Kim Schoenholtz, 09 July 2018

Laura Alfaro, Gonzalo Asis, Anusha Chari, Ugo Panizza, 13 June 2017

Leverage levels in emerging market firms rose dramatically in the aftermath of Global Crisis. This column examines whether concerns of a repeat of the Asian financial crisis, which was largely attributed to corporate financial roots, are justified. While firm financial fragility is more widespread, it is less severe than in the period preceding the Asian Financial Crisis. However, certain large firms with high levels of foreign currency leverage are a potential key source of vulnerability in the transmission of adverse shocks such as exchange rate depreciations. 

David Vines, 15 June 2010

Unlike Southeast Asia, Greece cannot devalue its currency in a bid to kick start an export-led recovery. Instead this column argues that, while it will be politically difficult, Greece needs a combination of debt reschedulement and consolidated, coordinated wage cuts – and fast.

Events

CEPR Policy Research