Crisis spillovers in emerging market economies

"Many emerging market economy (EME) financial crises in the 1990s quickly spread to other countries. By contrast, spillovers from the Argentina crisis in 2001-02 appear to have been much more limited. Why do some crises spread widely and others do not? In this paper the joint importance of intra-EME linkages, related country-specific vulnerabilities and investor behaviour are stressed. This framework provides insights into some potential reasons behind the differing extent of spillovers in two case studies - Asia 1997-98 and Argentina 2001-02. It also highlights the need for further analysis of the less easily measurable elements of the framework, in particular changes in investor behaviour"--Bank of England web site.