Precarious Credit Equilibria: Reflections on the Asian Financial Crisis

  • Joseph R. Bisignano

Abstract

This paper examines some of the origins of the current East Asian financial crisis. Its focus is on the role of moral hazard and the weakness of prudential regulation and supervision in countries following financial deregulation and capital flow liberalization. While major differences exist among the Asian countries currently in crises, there are important similarities between the micro-financial vulnerabilities which eventually led to earlier crises in Latin America, Japan, and the Nordic countries. These similarities are illustrated with reference to Korea, Sweden, and Chile.

Keywords

Economic Crisis Assure Turkey Malaysia Argentina 

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Joseph R. Bisignano
    • 1
  1. 1.Bank for International SettlementsUSA

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