Distributional Effects of Crises : The Role of Financial Transfers

Financial crises affect income distribution by way of different channels. The authors argue that financial transfers are an important channel which has been overlooked by the literature. They study the role of financial transfers by analyzing some of the most severe Latin American crises during the past decades (Chile 1981-83, Mexico 1994-95, Ecuador 1998-2000, Argentina 2001-02, and Uruguay 2002). First, the authors investigate transfers to the financial sector-those from nonparticipants to participants of the financial sector. Second, they explore who receives these financial transfers by identifying the winners and losers within the financial sector. Their analysis suggests that financial transfers during crises are large and expected to increase income inequality.

Bibliographic Details

Main Authors:	Halac, Marina, Schmukler, Sergio L.
Language:	English en_US
Published:	World Bank, Washington, DC 2003-10
Subjects:	AFFILIATES, ASSET MANAGEMENT, BAD LOANS, BANK ACCOUNTS, BANK DEPOSITS, BANK FAILURES, BANK LIQUIDITY, BANK LOANS, BANK RUN, BANKING CRISES, BANKING CRISIS, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCY, BANKS, BONDS, BOOK VALUE, CAPITAL ASSETS, CAPITAL CONTROLS, CAPITAL FLIGHT, CAPITAL GAINS, CAPITAL LOSSES, CAPITAL MARKETS, CAPITAL OUTFLOWS, CAPITALIZATION, CENTRAL BANK, CENTRAL BANK LIQUIDITY, COMMERCIAL BANK, COMMERCIAL BANKS, CONSUMERS, CONTAGION, CREDIT MARKETS, CURRENCY CRISES, CURRENCY CRISIS, CURRENCY DEPRECIATION, CURRENCY DEVALUATIONS, DEBT, DEBT RELIEF, DEPOSIT ACCOUNTS, DEPOSIT GUARANTEES, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, DEVALUATION, DISTRIBUTION OF INCOME, DISTRIBUTIONAL IMPACT, DOLLAR DEPOSITS, DOMESTIC INVESTORS, EMERGING ECONOMIES, EMERGING MARKETS, EMPLOYMENT, EXCHANGE RATE, EXTERNAL ASSETS, EXTERNAL CREDIT, EXTERNAL SHOCKS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL SECTOR, FINANCIAL SECTOR CRISES, FINANCIAL SERVICES, FINANCIAL SYSTEM, FOREIGN CURRENCY, FOREIGN CURRENCY DEPOSITS, FOREIGN EXCHANGE, FOREIGN INVESTORS, GDP, GDP PER CAPITA, GINI COEFFICIENT, GOVERNMENT BAILOUT, GOVERNMENT BONDS, GROSS DOMESTIC PRODUCT, HIGH INFLATION, INCOME DISTRIBUTION, INFLATION, INSOLVENCY, INTEREST RATE, INTEREST RATES, INTERNATIONAL RESERVES, INTERNATIONAL TRADE, LEGISLATION, LIQUIDITY SUPPORT, LOOTING, MATURITIES, MORAL HAZARD, OFFSHORE BANKING, PRESENT VALUE, PRIVATE BANKS, PUBLIC SERVICES, RECESSION, SAVINGS, SECURITIES, SHAREHOLDERS, SOCIAL SERVICES, SUBSIDIARY, TAKEOVER, TIME DEPOSITS, TIME SERIES, TRADING, TRANSACTION COSTS, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2003/11/2861348/distributional-effects-crises-role-financial-transfers https://hdl.handle.net/10986/17739
Tags:	Add Tag No Tags, Be the first to tag this record!