Empirical Analysis of Financial Fragility: Construction of Early Warning Systems for Emerging Markets

Author: (USA) Goltztein
Publisher:
Publish Date: 2005-08-01
Features: This book analyzes early warning indicators of bank and monetary crises in emerging economies and provides empirical tests. The purpose is to identify the main patterns preceding bank and monetary crises, enabling government officials and private market participants to recognize the possibility of financial crises earlier. This, in turn, makes corrective measures easier to implement, thereby preventing such crises from occurring. Recently, there has been a significant increase in interest in confirming early warning indicators of financial crises, mainly due to the following two points: excessive losses suffered by countries affected by crises and a heightened awareness of the lack of close monitoring of market indices.