Exam 27: Financial Crises in Emerging Markets

The mismanagement of financial liberalization in emerging market countries can be understood as a severe ________.

In recent years, a number of developing and transition countries have experienced financial crises, the most dramatic of which was the ________.

The two key factors that trigger speculative attacks on emerging market currencies are ________.

Factors that led to worsening financial market conditions in East Asia in 1997-1998 included ________.

Factors that led to worsening conditions in Mexico's 1994-1995 financial markets, but did not lead to worsening financial market conditions in East Asia in 1997-1998 included ________.

Explain what is meant by prudential regulation.

The key factor leading to the financial crises in Mexico and the East Asian countries was ________.

Severe fiscal imbalances can directly trigger a currency crisis since ________.

Economic hardship resulting from a financial crises includes ________.

In emerging market countries, many firms have debt denominated in foreign currency like the dollar or yen. A depreciation of the domestic currency ________.

Factors likely to cause a financial crisis in emerging market countries include ________.

Factors that led to worsening financial market conditions in East Asia in 1997-1998 include ________.

Argentina's financial crisis was due to ________.

A sharp depreciation of the domestic currency after a currency crisis leads to ________.

Factors that led to worsening financial market conditions in East Asia in 1997-1998 included ________.

Factors that led to worsening conditions in Mexico's 1994-1995 financial markets included ________.

A feature of debt markets in emerging-market countries is that debt contracts are typically ________.

What is meant by market-based discipline?

What is a currency mismatch and why does it create risks?

List four things that emerging market economies can do to prevent financial crises.