1. LA PARTICIPACIÓN DE LOS BANCOS CENTRALES EN LAS CRISIS BANCARIAS DE LA AMERICA LATINA.
- Author
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JÀcome, Luis I. H.
- Subjects
- *
CENTRAL banking industry , *FINANCIAL crises , *MACROECONOMICS , *CURRENCY crises , *EMERGING markets , *FINANCIAL statements ,LATIN American economy - Abstract
This paper analyzes central banks' role in banking crises in Latin America. It finds that, except in a handful of cases, where bank resolution was timely executed, central bank money was used in large scale to contain and manage systemic and small crises alike. However, pouring money into the financial system tended to fuel macroeconomic unrest and increased the chances of currency crises, in particular in emerging market countries. While subject to some caveats, the conclusions of this paper are relevant and should be taken by developing countries as a warning against excessively expanding central banks' balance sheets to cope with financial crises, as several industrial countries have done it recently. [ABSTRACT FROM AUTHOR]
- Published
- 2013