Elgar Encyclopedia of Financial Crises

Edited by Sara Hsu, Clinical Associate Professor, University of Tennessee, Knoxville, US

‘The literature on financial crises is as rich and dramatic as financial crises themselves. Scholars of the subject – specialists and neophytes alike – are lucky to now have definitive introductions to its various aspects all in one place. We are indebted to Sara Hsu and colleagues for providing this essential reference.’

• Contents:Preface xii1 2002 Uruguay banking crisis 1Simone Selva2 2008 Financial Crisis in the US 7Sara Hsu and Brandon Dupont3 A Classical-Keynesianapproach to financial crises 11Carlo Panico4 A financial crisis asa form of VUCA (volatile,uncertain, complex, andambiguous situation) 17Tiia Vissak5 A modern Greek tragedy:the crises of 2009–2015 21Animesh Ghoshal6 Argentina’s 1989 crisis 26Hernán Eduardo Neyra andAndrés Ernesto Ferrari Haines7 Asian financial crisis 31Andrew Sheng8 Assessing reservemanagement duringeconomic crises: lessonsfrom Indonesia and Nigeria 35Phyllis Papadavid9 Austrian School monetaryexplanation for the business cycle 43Cameron M. Weber10 Bank and corporatebalance sheetvulnerabilities and currency crises 48Manuel Duarte Rocha andRoberto Accioly Perrelli11 Belgium’s crises in thepre-World War I era 51Gertjan Verdickt12 Bolivia—debtaccumulation in the 1970s,hyperinflation in the 1980s 54Gabriel Martinez13 Canada and the globalfinancial crisis 58Ian Roberge14 Canada’s asset-backedcommercial paper crisis 62Ian Roberge15 Central banks 65Nicolás Varela García16 Changes in commodityprices as the factortriggering financial crises 70Marek Dabrowski17 Chile: the 1973 economiccrisis and the military coup 76Juan M. Padín18 Chile’s 1981–83 crisis 78Gabriel Martinez19 Colombia during thefinancial crisis of the 1980s 84Carlos Eduardo Hernández andEdwin López-Rivera20 Colombia during thefinancial crisis of the late 1990s 88Carlos Eduardo Hernández andEdwin López-Rivera21 Colombia during the GreatDepression 92Carlos Eduardo Hernández andEdwin López-Rivera22 Crisis prevention and resolution 95Sara Hsu23 Definition of banking crisis 98Ali Ari24 Determinants of banking crises 101Ali Ari25 Discovering businessopportunities emergingfrom financial crises 105Tiia Vissak26 Early warning systems(EWS) of currency crises 108Manuel Duarte Rocha andRoberto Accioly Perrelli27 Ecuador’s 1999 triplefinancial crisis 111Gabriel Martinez28 Egypt’s currency andfinancial crisis 118Simon Neaime and Isabelle Gaysset29 Factors determining publicdebt sustainability 121Marek Dabrowski30 Financial crises andfinancial regulation: whatrelationship? 127Lyubov Klapkiv and Faruk Ülgen31 Financial crises in Spainafter Bretton Woods: 1977and 2008 crises 136Concha Betrán and María A. Pons32 Financial crises in theOttoman Empire 141Akif Berber33 Financial crises in Turkey 146Ali Ari34 Financial crises, theirforms, interrelationsbetween them, and crises’ origins 151Marek Dabrowski35 Financial liberalization,the capital surge, and the1994–1995 peso crisis 155Juan Carlos Moreno-Brid andJoaquín Sánchez Gómez36 Financial stability inthe insurance sector: thecase of the AmericanInternational Group, AIG 157Lyubov Klapkiv and Faruk Ülgen37 Firms’ ways to deal withfinancial crises 162Tiia Vissak38 Fiscal policy and financialinstability 165John Lodewijks39 Global capital flows andfinancial instability 168John Lodewijks40 Global imbalances andglobal recession 171Ensar Yõlmaz41 Global pandemic andstock market volatility ofAsia-Pacific countries 176Naji Mansour Nomran andRazali Haron42 Great crises of thetwentieth and twenty-firstcenturies: a Schumpeterianperspective 181Faruk Ülgen and Lyubov Klapkiv43 Hyman Minsky (1919–1996) 189Brenda Spotton Visano44 IMF and World Bankremedies for financial instability 191John Lodewijks45 Income inequality beforethe Great Depression andGlobal Recession 194Ensar Yõlmaz46 India’s balance of payments crises 199Animesh Ghoshal47 Inequality created byactive monetary policy 204Cameron M. Weber48 Inflation 209Nicolás Varela García49 International banking regulation 214Martina Metzger50 Italy and the 1992 crisis ofthe European Monetary System 219Roberto Di Quirico51 Italy and the Eurozone crisis 222Roberto Di Quirico52 John Maynard Keynes(1883–1946) 226Brenda Spotton Visano53 Joseph Alois Schumpeter(1883–1950) 230Brenda Spotton Visano54 Lebanon’s perfect storm 232Simon Neaime and Isabelle Gaysset55 Liability dollarization 236Gabriel Martinez56 London and theexchange-rate crisis of 1931 240Christopher Godden57 London and the financialcrisis of 1914 244Christopher GoddenMalaysian crisis 1985 248Simone Selva59 Marxian crisis theory 251Deb Das60 Monetary policy andfinancial stability in Africaduring COVID-19 253Phyllis Papadavid and DirkWillem te Velde61 Panic of 1857 256William V. Rapp62 Panic of 1907 260William V. Rapp63 Philippines banking crisis of 1981 264Simone Selva64 Portuguese banking crisis of 1876 267Rita Martins de Sousa65 Portuguese financial crisisof 1890/91 270Rita Martins de Sousa66 Recoveries from financial crises 275Peter H. Bent67 Southeast Asian crisis froma currency perspective 280Martina Metzger68 Spain’s crises in theinterwar period: the GreatDepression 284Concha Betrán and María A. Pons69 Spain’s crises in thesecond half of thenineteenth century (goldstandard system) 289Concha Betrán and María A. Pons70 Systemic risk and credit risk 294Victor A. Beker71 Thailand 1997: the sparkthat started the fire 296Gabriel Martinez72 The 1893 bank crisis 303Brandon Dupont73 The 1931 banking crisis in Italy 307Roberto Di Quirico74 The 1935 Italian currency crisis 311Roberto Di Quirico75 The 1967 Indonesianbanking crisis 314Agusman Agusman76 The 1997–1998 Koreanfinancial crisis 317Seung Jung Lee77 The 1997–1998 financialcrisis in Japan 320Hiromichi Iwaki78 The 1997/1998 Indonesianbanking crisis 326Agusman Agusman79 The 1998 Russian debt crisis 330Peter C. Earle80 The 2001 Argentina financial crisis 332Hernán Eduardo Neyra andAndrés Ernesto Ferrari Haines81 The 2007 financial crisis inthe United Kingdom 340Seung Jung Lee82 The 2008–2009international financialcrisis: influenza or minorcold in Mexico? 343Juan Carlos Moreno-Brid andJoaquín Sánchez Gómez83 The 2008/2009 financialcrisis in Brazil 346Rafael F. Schiozer and Paulo R.S. Terra84 The Argentinean financialand debt crisis of 2019 351Juan Santarcángelo85 The banking crisis inNorway 1987–1993 354Ola Honningdal Grytten86 The Brazilian bankingcrisis of 1994/95 360Rafael F. Schiozer and Paulo R.S. Terra87 The Brazilian currencycrisis of 1999 363Rafael F. Schiozer and Paulo R.S. Terra88 The Covid-19 crisis inMexico (2020 …) 368Juan Carlo Moreno-Brid andJoaquín Sánchez Gómez89 The Credit-Anstalt crisis of 1931 372Aurel Schubert90 The debt crisis in LatinAmerica in the 1980s 376Juan Santarcángelo91 The developing countrydebt crisis of the 1980s 379Harald Sander92 The Euro Crisis 383Harald Sander93 The financial crisis inJapan in the 1920s 389Hiromichi Iwaki94 The Finnish banking crisisof the 1930s 394Karlo Kauko95 The Finnish banking crisisof the 1990s 397Karlo Kauko96 The Great Depression in Norway 402Ola Honningdal Grytten97 The Great Depression inthe United States 406Charles Bartlett98 The Icelandic bankingcrisis of 2008 413Karlo Kauko99 The impacts of financialcrises on firms’ exports 417Tiia Vissak100 The Irish financial crisis of2007–2010 420Aurel Schubert101 The lost decade and the1982 debt crisis in Mexico 424Juan Carlos Moreno-Brid andJoaquín Sánchez Gómez102 The Norwegian monetarycrisis in the mid-1920s 426Ola Honningdal Grytten103 The “odious” route toa sovereign debt crisis inthe Democratic Republic of Congo 431Mohit Arora104 The period of the 1930s inthe Portuguese economy 436Rita Martins de Sousa105 The post-war depression inNorway in the early 1920s 440Ola Honningdal Grytten106 The special period in Cuba 444Peter C. Earle107 The US savings and loan crisis 446James R. Barth, Yanfei Sun andMin Gu108 Tobin Tax and capital controls 452John Lodewijks109 Too big to fail 455Victor A. Beker110 Tulip mania 1637 andother crises in the Netherlands 458Simone Selva111 US financial crises andgrowing federal oversightof banking 463James R. Barth and StephenMatteo MillerIndex 473