CXO

The Financial Crisis Of 2007-9 And Emerging Countries: The Political Economy Analysis Of Central Banks In The Brazilian And Korean Economies

Date Added: Nov 2010
Format: PDF

Insofar as the global crisis of 2007-9 can be understood as a fully-fledged crisis of the financialisation era, it has presented new challenges for central banks. However, this paper argues the central banks' interventions in key middle income countries (Brazil and Korea) have reinforced the main characteristics of financialisation and have been different from their previous foreign exchange crisis of the late 1990s. The key reasons for this sharp contrast in central bank interventions can be found firstly, in the origins of the recent crisis - in developed financial markets - which is different from the previous one which originated in emerging markets.