Document Type
Article
Abstract
This study examines the early warning indicators of crises and the optimal policies for mitigating economic crises. Based on meta-analysis of 72 studies, we find that the exchange rate is the most used indicator in detecting crises, and the optimal policies for mitigating crises are monetary and fiscal policies. We further find that besides the exchange rate, the interest rate is a dominant indicator of crises in developed countries.Moreover, the foreign exchange, international reserves and current account are the dominant indicators in developing countries. The evidence for developing countries aligns with the finding that policies addressing external sector performance are preferable to mitigate crises in these countries.
Recommended Citation
Abubakar, Arlyana; Utari, G.A. Diah; and Azwar, Prayudhi
(2020)
"EARLY WARNING INDICATORS AND OPTIMAL POLICIES FOR MITIGATING ECONOMIC CRISES: EVIDENCE FROM META-ANALYSIS,"
Bulletin of Monetary Economics and Banking: Vol. 23:
No.
2, Article 4.
DOI: https://doi.org/10.21098/bemp.v23i1.1421
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol23/iss2/4
First Page
269
Last Page
294
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
Bank Indonesia
