Publication:
Financial Globalization and the Russian Crisis of 1998

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dc.contributor.authorPinto, Brian
dc.contributor.authorUlatov, Sergei
dc.date.accessioned2012-03-19T18:39:59Z
dc.date.available2012-03-19T18:39:59Z
dc.date.issued2010-05-01
dc.description.abstractRussia had more-or-less completed the privatization of its manufacturing and natural resource sectors by the end of 1997. And in February 1998, the annual inflation rate at last dipped into the single digits. Privatization should have helped with stronger micro-foundations for growth. The conquest of inflation should have cemented macroeconomic credibility, lowered real interest rates, and spurred investment. Instead, Russia suffered a massive public debt-exchange rate-banking crisis just six months later, in August 1998. In showing how this turn of events unfolded, the authors focus on the interaction among Russia's deteriorating fiscal fundamentals, its weak micro-foundations of growth and financial globalization. They argue that the expectation of a large official bailout in the final 10 weeks before the meltdown played an important role, with Russia's external debt increasing by $16 billion or 8 percent of post-crisis gross domestic product during this time. The lessons and insights extracted from the 1998 Russian crisis are of general applicability, oil and geopolitics notwithstanding. These include a discussion of when financial globalization might actually hurt and a cutoff in market access might actually help; circumstances in which an official bailout could backfire; and why financial engineering tends to fail when fiscal solvency problems are present.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100517152914
dc.identifier.doi10.1596/1813-9450-5312
dc.identifier.urihttps://hdl.handle.net/10986/3797
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5312
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectACCOUNTING STANDARDS
dc.subjectARBITRAGE
dc.subjectARREARS
dc.subjectASSET QUALITY
dc.subjectAUCTION
dc.subjectAUCTIONS
dc.subjectBAILOUT
dc.subjectBAILOUTS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBALANCE-OF-PAYMENTS CRISES
dc.subjectBANK DEBT
dc.subjectBANK DEPOSITS
dc.subjectBANK PORTFOLIOS
dc.subjectBANK SUPERVISION
dc.subjectBANKING CRISIS
dc.subjectBANKING SYSTEM
dc.subjectBANKRUPTCY
dc.subjectBASIS POINTS
dc.subjectBENCHMARK BONDS
dc.subjectBID
dc.subjectBOND
dc.subjectBOND SPREAD
dc.subjectBOND SPREADS
dc.subjectBORROWING COSTS
dc.subjectBROAD MONEY
dc.subjectBUDGET CONSTRAINTS
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL ALLOCATION
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MARKETS
dc.subjectCASH SETTLEMENTS
dc.subjectCENTRAL BANK
dc.subjectCOLLATERAL
dc.subjectCOMMERCIAL BANK
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSUMER GOODS
dc.subjectCORPORATE BONDS
dc.subjectCORPORATE GOVERNANCE
dc.subjectCOUPON
dc.subjectCREDIBILITY
dc.subjectCREDIT RISKS
dc.subjectCREDIT SPREADS
dc.subjectCREDIT SQUEEZE
dc.subjectCREDITORS
dc.subjectCRISIS COUNTRIES
dc.subjectCURRENCY
dc.subjectCURRENCY CRISIS
dc.subjectCURRENCY DEPRECIATION
dc.subjectCURRENCY MISMATCHES
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectCURRENT ACCOUNT SURPLUS
dc.subjectCURRENT ACCOUNT SURPLUSES
dc.subjectDEBT BURDEN
dc.subjectDEBT FINANCING
dc.subjectDEBT INSTRUMENTS
dc.subjectDEBT OBLIGATIONS
dc.subjectDEBT OUTSTANDING
dc.subjectDEBT PAYMENTS
dc.subjectDEBT RESTRUCTURING
dc.subjectDEBT SWAPS
dc.subjectDEFAULT RISK
dc.subjectDEPOSIT
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDERIVATIVES
dc.subjectDEVALUATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDIRECTED CREDITS
dc.subjectDISBURSEMENT
dc.subjectDOLLAR DEBT
dc.subjectDOMESTIC CREDIT
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC INTEREST RATE
dc.subjectDOMESTIC INTEREST RATES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectENTERPRISE OPERATIONS
dc.subjectEUROBOND
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXPENDITURE
dc.subjectEXPORTERS
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL DEBTS
dc.subjectEXTERNAL FUNDING
dc.subjectFACE VALUE
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL LIBERALIZATION
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SUPPORT
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL POLICY
dc.subjectFIXED EXCHANGE RATE
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN CURRENCY DEBT
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE RESERVES
dc.subjectFOREIGN INTEREST
dc.subjectFOREIGN PORTFOLIO INVESTMENT
dc.subjectFORGIVENESS
dc.subjectFUND MANAGERS
dc.subjectGLOBALIZATION
dc.subjectGOVERNMENT BORROWING
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT DEBT MARKET
dc.subjectGOVERNMENT FINANCING
dc.subjectGOVERNMENT PAPER
dc.subjectGOVERNMENT SECURITIES
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectHEDGE FUND
dc.subjectHEDGE FUNDS
dc.subjectHOLDINGS
dc.subjectIMPLICIT SUBSIDIES
dc.subjectIMPLICIT SUBSIDY
dc.subjectINDEBTEDNESS
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINTEREST DIFFERENTIAL
dc.subjectINTEREST PAYMENTS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BOND
dc.subjectINTERNATIONAL BOND MARKETS
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL FINANCIAL INSTITUTIONS
dc.subjectINTERNATIONAL SETTLEMENTS
dc.subjectINVESTING
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDATION
dc.subjectLIQUIDITY
dc.subjectLOAN
dc.subjectLOAN REPAYMENTS
dc.subjectLOAN SIZE
dc.subjectLONG-TERM CAPITAL
dc.subjectMACROECONOMIC CRISES
dc.subjectMACROECONOMIC ENVIRONMENT
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC STABILITY
dc.subjectMACROECONOMIC STABILIZATION
dc.subjectMARKET ACCESS
dc.subjectMARKET ECONOMY
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET VALUE
dc.subjectMARKET YIELD
dc.subjectMATURITIES
dc.subjectMONETARY POLICY
dc.subjectMONEY MANAGER
dc.subjectMONEY MANAGERS
dc.subjectMORAL HAZARD
dc.subjectNON-PERFORMING LOANS
dc.subjectNONPAYMENTS
dc.subjectOIL PRICE
dc.subjectOIL PRICES
dc.subjectOUTPUT LOSS
dc.subjectOUTSIDE INVESTORS
dc.subjectOUTSTANDING STOCK
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPHYSICAL ASSETS
dc.subjectPOLITICAL RISK
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO FLOWS
dc.subjectPORTFOLIO INFLOWS
dc.subjectPORTFOLIOS
dc.subjectPRICE CHANGES
dc.subjectPRIMARY DEALERS
dc.subjectPRIVATE BANKS
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CAPITAL INFLOWS
dc.subjectPRIVATE INVESTORS
dc.subjectPROMISSORY NOTES
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC FINANCES
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectREAL INTEREST RATES
dc.subjectRENEGOTIATION
dc.subjectREPO
dc.subjectREPOS
dc.subjectRESERVES
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK MANAGEMENT
dc.subjectSAVINGS BANK
dc.subjectSECONDARY MARKET
dc.subjectSHORT-TERM EXTERNAL DEBT
dc.subjectSHORT-TERM INTEREST RATES
dc.subjectSOLVENCY
dc.subjectSOVEREIGN BONDS
dc.subjectSOVEREIGN DEBT
dc.subjectSOVEREIGN DEBT PROBLEMS
dc.subjectSOVEREIGN LIABILITY
dc.subjectSOVEREIGN RISK
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKETS
dc.subjectSWAP
dc.subjectSWAPS
dc.subjectTAX
dc.subjectTAX COLLECTIONS
dc.subjectTAX EXEMPTIONS
dc.subjectTAX POLICY
dc.subjectTAX RATE
dc.subjectTOTAL DEBT
dc.subjectTRADING
dc.subjectTRANCHES
dc.subjectTRANSITION COUNTRIES
dc.subjectTRANSITION ECONOMIES
dc.subjectTREASURY
dc.subjectTREASURY BILL
dc.subjectTREASURY BILLS
dc.subjectTREASURY NOTE
dc.subjectUNDERLYING ASSETS
dc.titleFinancial Globalization and the Russian Crisis of 1998en
dspace.entity.typePublication
okr.crossref.titleFinancial Globalization And The Russian Crisis Of 1998
okr.date.doiregistration2025-04-10T11:50:00.873636Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100517152914
okr.guid661481468336534189
okr.identifier.doi10.1596/1813-9450-5312
okr.identifier.externaldocumentum000158349_20100517152914
okr.identifier.internaldocumentum12269819
okr.identifier.reportWPS5312
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/05/17/000158349_20100517152914/Rendered/PDF/WPS5312.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.administrativeEurope and Central Asia
okr.region.countryRussian Federation
okr.region.geographicalEurope
okr.region.geographicalEastern Europe
okr.region.geographicalCommonwealth of Independent States
okr.region.geographicalAsia
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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