TY - BOOK ID - 11272202 TI - The Transmission of Financial Stress from Advanced to Emerging Economies. PY - 2009 SN - 1451917090 1462388051 1282843478 9786612843471 1451872801 1452736952 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Finance KW - Business & Economics KW - International Finance KW - International finance. KW - Financial crises. KW - Crashes, Financial KW - Crises, Financial KW - Financial crashes KW - Financial panics KW - Panics (Finance) KW - Stock exchange crashes KW - Stock market panics KW - International monetary system KW - International money KW - Crises KW - International economic relations KW - Banks and Banking KW - Finance: General KW - Financial Risk Management KW - Macroeconomics KW - Financial Crises KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - General Financial Markets: General (includes Measurement and Data) KW - Economic & financial crises & disasters KW - Banking KW - Financial crises KW - Stock markets KW - Systemic crises KW - Banking crises KW - Banks and banking KW - Stock exchanges KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:11272202 AB - This paper studies how financial stress is transmitted from advanced to emerging economies, using a new financial stress index for emerging economies. An episode of financial stress is defined as a period when the financial system's ability to intermediate may be impaired. Previous financial crises in advanced economies passed through strongly and rapidly to emerging economies. In line with this pattern, the unprecedented spike in financial stress in advanced economies elevated financial stress across emerging economies above levels seen during the Asian crisis, but with significant cross-country variation. The extent of pass-through of financial stress is related to the depth of financial linkages between advanced and emerging economies. The paper finds that higher current account and fiscal balances do little to insulate emerging economies from the transmission of financial stress in advanced economies. However, they may help dampen the impact on the real sector of emerging economies and help reestablish financial stability and foreign capital inflows once financial stress subsides. ER -