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The Asian Financial Crisis: Origins, Implications, and Solutions

  • Editors
  • William C. Hunter
  • George G. Kaufman
  • Thomas H. Krueger

Table of contents

  1. Front Matter
    Pages i-xiv
  2. Opening Remarks

    1. Front Matter
      Pages 1-1
    2. Michael H. Moskow
      Pages 11-14
  3. Origins of the Asian Crisis

    1. Front Matter
      Pages 15-15
    2. Craig Burnside, Martin Eichenbaum, Sergio Rebelo
      Pages 17-26
    3. Michael P. Dooley
      Pages 27-31
    4. Roberto Chang
      Pages 65-71
  4. Causes and Implications of the Asian Crisis—The Role of the Financial Sector, Domestic Policies, and Contagion

  5. Response to the Crisis—Overview and Case Studies

    1. Front Matter
      Pages 155-155
    2. Bijan B. Aghevli
      Pages 157-166
    3. Stijn Claessens, Swati Ghosh, David Scott
      Pages 167-192
    4. Yoshihiro Iwasaki
      Pages 193-200
    5. Richard J. Herring
      Pages 201-205
    6. Yung Chul Park
      Pages 207-210
  6. Containing the Risks of Future Crisis—Strengthening the Regulatory Framework

  7. Early Warning Indicators, Transparency, and Market Response

    1. Front Matter
      Pages 303-303
    2. Morris Goldstein
      Pages 321-330
    3. Graciela L. Kaminsky
      Pages 331-339
    4. John A. Wing
      Pages 341-346
    5. Martin Mayer
      Pages 347-350
  8. Moral Hazard and the Role of International Rescue Programs

    1. Front Matter
      Pages 377-377
    2. Charles W. Calomiris
      Pages 379-384
    3. Michael Mussa
      Pages 385-388
  9. The Future Role of the International Monetary Fund in International Rescue Operations

    1. Front Matter
      Pages 399-399
    2. Barry Eichengreen
      Pages 401-423
    3. Robert E. Litan
      Pages 425-441
  10. Lessons from the Crisis for the International Financial System

    1. Front Matter
      Pages 459-459

About this book

Introduction

In the late 1990s, Korea, Thailand, Indonesia and Malaysia experienced a series of major financial crises evinced by widespread bank insolvencies and currency depreciations, as well as sharp declines in gross domestic production. This sudden disruption of the Asian economic `miracle' astounded many observers around the world, raised questions about the stability of the international financial system and caused widespread fear that this financial crisis would spread to other countries. What has been called the Asian crisis followed a prolonged slump in Japan dating from the early 1980s and came after the Mexican currency crisis in the mid-1990s. Thus, the Asian crisis became a major policy concern at the International Monetary Fund as well as among developed countries whose cooperation in dealing with such financial crises is necessary to maintain the stability and efficiency of global financial markets.
This book collects the papers and discussions delivered at an October 1998 Conference co-sponsored by the Federal Reserve Bank of Chicago and the International Monetary Fund to examine the causes, implications and possible solutions to the crises. The conference participants included a broad range of academic, industry, and regulatory experts representing more than thirty countries. Topics discussed included the origin of the individual crises; early warning indicators; the role played by the global financial sector in this crisis; how, given an international safety net, potential risks of moral hazard might contribute to further crises; the lessons for the international financial system to be drawn from the Asian crisis; and what the role of the International Monetary Fund might be in future rescue operations.
Because the discussions of these topics include a wide diversity of critical views and opinions, the book offers a particularly rich presentation of current and evolving thinking on the causes and preventions of international banking and monetary crises. The book promises to be one of the timeliest as well as one of the most complete treatments of the Asian financial crisis and its implications for future policymaking.

Keywords

East Asia Financial Market Financial Markets Nation production productivity

Bibliographic information