Alternative approaches to financial crises in emerging markets

Vol. 16 No. 2 (1996)

Apr-Jun / 1996
Published April 1, 1996

How to Cite

Sachs, Jeffrey. 1996. “Alternative Approaches to Financial Crises in Emerging Markets”. Brazilian Journal of Political Economy 16 (2):202-16.

Alternative approaches to financial crises in emerging markets

Jeffrey Sachs
Jeffrey Sachs is Director of the Harvard Institute for International Development (HIID) and Galen L. Stone’s Professor of International Trade, Harvard University
Brazilian Journal of Political Economy, Vol. 16 No. 2 (1996), Apr-Jun / 1996, Pages 202-216


This text analyzes the occurrence of crises in the financial markets of the so-called
emerging economies. In the second section, we analyze the factors that can lead to financial
crises in these markets, as well as suggest some macroeconomic measures or institutional
arrangements that could prevent or minimize them. The third section discusses the role of
international organizations, especially the IMF, in preventing and resolving these crises.

JEL Classification: F37; F65.

Keywords: Financial crisis models and forecasting capital flows