Occasional Papers

Debt-Related Vulnerabilities and Financial Crises

Author/Editor:

Brad Setser ; Ioannis Halikias ; Alexander Pitt ; Christoph B. Rosenberg ; Brett E. House ; Jens Nystedt ; Christian Keller

Publication Date:

October 24, 2005

Electronic Access:

Link to Abstract

Summary:

The analysis of currency and maturity mismatches in sectoral balance sheets has increasingly become a regular element in the IMF’s tool kit for surveillance in emerging market countries. This paper describes this so-called balance sheet approach and shows how it can be applied to detect vulnerabilities and shape policy advice. It also provides a broad-brushed overview of how balance sheet vulnerabilities have evolved over the past decade and cites a number of case studies.

Series:

Occasional Paper No. 2005/008

Subject:

Commercial banks Currencies External debt Financial institutions Financial statements Money Public debt Public financial management (PFM) Public sector

Frequency:

Annually