Emerging markets' financial crisis and their contagion effect

Barely two decades after the Asian financial crisis Asia was suddenly confronted with multiple challenges originating outside the region: the 2008 global financial crisis, the European debt crisis, and, finally developed economies’ implementation of unconventional monetary policies. Especially the implementation of quantitative easing (QE), ultra-low interest rate policies, and negative interest rate policies by a number of large central banks has given rise to concerns over financial stability and international capital flows. One of the regions most profoundly affected by the crisis was Asia due to its high dependence on international trade and international financial linkages. The objective of this book is to explain how macroeconomic shocks stemming from the global financial crisis and recent unconventional monetary policies in developed economies have affected macroeconomic and financial stability in emerging markets, with a particular focus on Asia. In particular, the book covers the following thematic areas: (i) the spillover effects of macroeconomic shocks on financial markets and flows in emerging economies; (ii) the impact of recent macroeconomic shocks on real economies in emerging markets; and (iii) key challenges for the monetary, exchange rate, trade, and macroprudential policies of developing economies, especially Asian economies, and suggestions and recommendations to increase resiliency against external shocks.

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The Effect of the Financial Crisis on Emerging Markets: A Comparative Analysis of the Stock Market Situation Before and After

EUROPEAN RESEARCH STUDIES JOURNAL ◽

10.35808/ersj/923 ◽

2017 ◽

Vol XX (Issue 4B) ◽

pp. 727-753 ◽

Cited By ~ 4

Author(s):

Simon Grima ◽

Luca Caruana

Keyword(s):

Comparative Analysis ◽

Financial Crisis ◽

Stock Market ◽

Emerging Markets ◽

Before And After ◽

Market Situation

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Hidden Danger Behind Financial Crisis in Emerging Markets

Proceedings of the 1st International Symposium on Innovative Management and Economics (ISIME 2021) ◽

10.2991/aebmr.k.210803.065 ◽

2021 ◽

Author(s):

Shiyuan Yang

Keyword(s):

Financial Crisis ◽

Emerging Markets

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Has International Financial Co-Movement Changed? Emerging Markets in the 2007–2009 Financial Crisis

The Impact of the Global Financial Crisis on Emerging Financial Markets - Contemporary Studies in Economic and Financial Analysis ◽

10.1108/s1569-3759(2011)0000093009 ◽

2011 ◽

pp. 231-253 ◽

Cited By ~ 2

Author(s):

John Ammer ◽

Fang Cai ◽

Chiara Scotti

Keyword(s):

Financial Crisis ◽

Emerging Markets

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Revisiting Macroeconomy–Stock Market Relationship During Times of Economic Crisis: A Study of Emerging Markets

Asia-Pacific Journal of Management Research and Innovation ◽

10.1177/2319510x18767713 ◽

2017 ◽

Vol 13 (1-2) ◽

pp. 52-69

Author(s):

Gagan Deep Sharma ◽

Mrinalini Srivastava ◽

Mansi Jain

Keyword(s):

Latin America ◽

Financial Crisis ◽

Stock Market ◽

Emerging Markets ◽

Economic Crisis ◽

Global Financial Crisis ◽

Market Returns ◽

Stock Market Returns ◽

Macroeconomic Variables ◽

The Relationship

This article examines the relationship between six macroeconomic variables and stock market returns of 13 emerging markets from Latin America, Europe, Africa and Asia in the context of global financial crisis of 2008. The findings reveal some commonality in determination and variation of returns with macroeconomic variables from pre-crisis (1st January 2005–31st March 2009) to post-crisis period (1st April 2009–31st March 2016). Further, results show co-integration among most of the macroeconomic variables depicting significant implications for investors and policymakers.

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