Please write an essay based on the information below
Read the following journal article:
Caramazza, F., Ricci, L. & Salgado, R. (2004) ‘International financial contagion in currency crises’, Journal of International Money and Finance, 23 (1), February, pp. 51–70.
Analyse the techniques and assumptions used by the authors to investigate the importance of financial weaknesses and linkages in the three crises described. On the basis of the evidence presented, how convincing is their conclusion of the following: ‘The common creditor is the most important and significant variable, and provides an economic explanation for the regional concentration of crises’?
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