Economic

WP/10/237

The Impact of the Great Recession on acclivitous Markets
Ricardo Llaudes, Ferhan Salman, and Mali Chivakul

© 2010 International Monetary Fund

WP/10/237

IMF on the job(p) Paper Strategy, constitution and Review Department The Impact of the Great Recession on Emerging Markets Prep ared by Ricardo Llaudes, Ferhan Salman, and Mali Chivakul Authorized for distribution by Lorenzo Giorgianni October 2010 Abstract This Working Paper should not be report as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper examines the electric shock of the recent global crisis on emerging market economies (EMs). Our cross country analysis shows that the impact of the crisis was more pronounced in those EMs that had sign weaker fundamentals and greater financial and trade linkages. This effect is detect along a number of dimensions, such as growth, pipeline market performance, sovereign spreads, and credit growth. This paper also shows that during this crisis, pre-crisis replacement holdings helped to mitigate the initial growth collapse.



This finding contrasts with other studies that omit to find a significant relationship between militia and the growth decline. This paper argues that our preferred measure of impact is a more accurate reflection of the true impact of the crisis on EMs.

JEL Classification Numbers: F01, G01, F15, F42 Keywords: Emerging markets, global crisis, vulnerabilities, reserves, linkages Authors E-Mail Address: rllaudes@imf.org, fsalman@imf.org, mchivakul@imf.org

2 Contents Page

 
I. Introduction ............................................................................................................................3 II. A Broad View of the Impact of the Crisis...If you want to get a full essay, order it on our website: Orderessay



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