Lessons for the International Financial System

  • Manuel Guitián


The currency turmoil in Asia—which now has extended to Russia as well—has been aggravated by a confidence crisis feeding on itself in a self-reinforcing and destructive way. Financial market “animal spirits” can be sensitive and fickle—which, I hasten to add, is not the same as saying that financial markets are irrational. And the nature of currency crises is such that they mutate over time, much like a virus. These factors make it extraordinarily difficult to predict crises. The initial triggers in a few countries like Thailand may have been reasonably visible, but the depth, timing, speed and spread of the events that followed were not foreseen.


Financial Market Financial Institution Capital Account Exchange Rate Policy International Financial Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Manuel Guitián
    • 1
  1. 1.International Monetary FundUSA

Personalised recommendations