Outside the US, Europe and Japan, the channels of propagation of the crisis were different. Emerging market economies that had strengthened their banks’ capital levels in the aftermath of banking crises in the 1990s experienced no financial crisis per se. There were, however, knock-on effects through other channels. Along with the disruption to global financial markets, for example, came a decline in cross-border financial flows and a collapse in exports. We start by looking at the growth experience across an array of countries over the period. Figure 1 plots the year-on-year real GDP growth rates for 12 major economies starting.
