Bailouts or Bail-Ins: Responding to Financial Crises in Emerging Markets [Paperback]

Nouriel Roubini (Author), Noriel Roubini (Author), Brad Setser (Author)

Book Description

Publication Date: August 2004

Roughly once a year, the managing director of the International Monetary Fund, the U.S. treasury secretary and in some cases the finance ministers of other G-7 countries will get a call from the finance minister of a large emerging market economy. The emerging market finance minister will indicate that the country is rapidly running out of foreign reserves, that it has lost access to international capital markets and, perhaps, that is has lost the confidence of its own citizens. Without a rescue loan, it will be forced to devalue its currency and default either on its government debt or on loans to the country's banks that the government has guaranteed. This book looks at these situations and the options available to alleviate the problem. It argues for a policy that recognizes that every crisis is different and that different cases need to be handled within a framework that provides consistency and predictability to borrowing countries as well as those who invest in their debt.

Editorial Reviews

About the Author

Nouriel Roubini is an associate professor of economics and international business at the Stern School of Business, New York University. He was a faculty member of the economics department at Yale University (1988-95). He was senior economist for international affairs at the White House Council of Economic Advisers (1998-99) and senior adviser to the undersecretary for international affairs and the director of the Office of Policy Development and Review at the US Treasury Department (1999-2000). He has been a long-time consultant to the International Monetary Fund and a number of other public and private institutions. He is a fellow at the National Bureau of Economic Research and the Centre for Economic Policy Research. He is coauthor of Political Cycles: Theory and Evidence (MIT Press, 1997).

Brad Setser is a research associate at the Global Economic Governance Programme at University College, Oxford. He was an international affairs fellow at the Council on Foreign Relations and a visiting scholar at the International Monetary Fund (IMF). He served in the US Treasury from 1997 to 2001, where he worked extensively on the reform of the international financial architecture, sovereign debt restructurings, and US policy toward the IMF. He was the acting director of the US Treasury's Office of International Monetary and Financial Policy.

Product Details

• Paperback: 384 pages
• Publisher: Peterson Institute; 1ST edition (August 2004)
• Language: English
• ISBN-10: 0881323713
• ISBN-13: 978-0881323719
• Product Dimensions: 9.1 x 6 x 0.8 inches
• Shipping Weight: 1.1 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #86,813 in Books (See Top 100 in Books)

More About the Author

Nouriel Roubini is a professor of economics at New York University's Stern School of Business. He has extensive senior policy experience in the federal government, having served from 1998 to 2000 in the White House and the U.S. Treasury. He is the founder and chairman of RGE Monitor (rgemonitor.com), an economic and financial consulting firm, regularly attends and presents his views at the World Economic Forum at Davos and other international forums, and is an adviser to cental bankers around the world.

Customer Reviews

Most Helpful Customer Reviews

7 of 7 people found the following review helpful:

5.0 out of 5 stars Fantastic reference to Emerging Market Crisis 1998-2002, September 5, 2009

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1000Books "1000Books" (NY,NY) - See all my reviews

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This review is from: Bailouts or Bail-Ins: Responding to Financial Crises in Emerging Markets (Paperback)

A really fantastic overview of the Emerging market crisis of the 1990s and early 2000s and the lessons learned. The book focuses on that time period, though it is a general book for the study of whether Bail outs or Bail ins are best.

Aside from just being a great comparative study, I would mention that the authors have done a fabulous job of creating comparative charts of the various crisis. This makes it very easy to understand why each nation has had a different experience and why there might be multiple solutions that are right depending on the nation involved, their existing infrastructure, their particular history, and what they might be expected to do given their existing resources.

For the absolute beginner, this might be a book that you read and come back to after you get a sense for what happened in a few of the different nations. For a practitioner or academic, this book is wonderfully organized with plenty of concise charts and diagrams that make for excellent presentation slides.

I particularly like the detail with which the authors discussed - as separately pertinent concepts - market forces, banking forces, and just plain poor macro management. Each of these aspects are actually separate mechanisms and should be considered when thinking about international liquidity and how to address a nation that may be having difficulty.

11 of 34 people found the following review helpful:

5.0 out of 5 stars One of the best...., February 24, 2007

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Hedgie (New York, NY) - See all my reviews

This review is from: Bailouts or Bail-Ins: Responding to Financial Crises in Emerging Markets (Paperback)

I don't know where to begin with this review, but I just wanted to say this is one of the best books on the subject and anyone interested in global economics and markets should read this book.