Case Study of a Currency Crisis: The Russian Default of 1998 (ICPSR 1271)

Version Date: Apr 18, 2003

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Principal Investigator(s):
Abbigail J. Chiodo, Federal Reserve Bank of St. Louis; Michael T. Owyang, Federal Reserve Bank of St. Louis

https://doi.org/10.3886/ICPSR01271.v1

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Summary

This paper uses a currency crisis framework to analyze the currency devaluation and debt default of post-Soviet Russia in August 1998. The authors show that even though the Russian economy recorded positive growth immediately preceding the default, the atmosphere was reflective of an impending crisis. The authors then consider the symptoms of a currency crisis -- specifically public and private debt responsibilities, devaluation expectations, and contractionary monetary policy -- and show that they were present in Russia at that time. Three generations of currency crisis models are reviewed, followed by speculation that the Russian default was a product not only of fiscal deficits but also of a fragile financial system and contractionary monetary policy. The authors address the possibility that the usual prescription for a currency crisis, that is, increasing interest rates, may have accelerated the default and that a case-by-case prescription may afford a better solution than a blanket policy of increasing interest rates in the face of devaluation.

Citation

Chiodo, Abbigail J., and Owyang, Michael T. Case Study of a Currency Crisis:  The Russian Default of 1998. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2003-04-18. https://doi.org/10.3886/ICPSR01271.v1

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Distributor(s)

Inter-university Consortium for Political and Social Research
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Data Collection Notes

  1. (1) The file submitted is the data file, 0211acd.txt. (2) These data are part of ICPSR's Publication-Related Archive and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.

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Original Release Date

2003-04-18

Version History

2018-02-15 The citation of this study may have changed due to the new version control system that has been implemented. The previous citation was:
  • Chiodo, Abbigail J., and Michael T. Owyang. Case Study of a Currency Crisis: The Russian Default of 1998. ICPSR01271-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2003-04-18. http://doi.org/10.3886/ICPSR01271.v1
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Notes

  • These data are flagged as replication datasets and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.

  • The public-use data files in this collection are available for access by the general public. Access does not require affiliation with an ICPSR member institution.