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Asian Crisis (asian + crisis)
Kinds of Asian Crisis Selected AbstractsThe International Financial Institutions (IFIs) and the Political Lessons from the Asian Crises of 1997,1998INTERNATIONAL SOCIAL SCIENCE JOURNAL, Issue 170 2001Luiz A. Pereira da Silva In the light of the 1997-98 Asian Crises that revealed to the general public more about the modus operandi and "raison d'être" of the Bretton Woods IFIs, this paper reviews the criticisms coming from the Left and the Right against them. Both sides suggest closing or limiting the IFIs' role but for opposite motives. The paper assesses the respective merits of these critiques to determine whether the IFIs can be seen as a prelude of a new, democratic global international order or, conversely, as merely the instruments of the "old" conservative world. [source] Asset Bubbles, Leverage and ,Lifeboats': Elements of the East Asian CrisisTHE ECONOMIC JOURNAL, Issue 460 2000H. J. Edison Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle , and in creating fragility in global financial markets? After a brief account of the nature of the East Asian crises of 1997/8, we use the framework of highly-leveraged, fully-collaterised firms due to Kiyotaki and Moore (1997) to explore the impact of a credit crunch. The paper emphasises the fragility of equilibrium and how rapidly boom can turn to bust. [source] Renewed authoritarianism in Southeast Asia: Undermining democracy through neoliberal reformASIA PACIFIC VIEWPOINT, Issue 3 2009Simon Springer Abstract In the wake of the Asian Crisis, cases studies from Southeast Asia often reinforced the perception that neoliberalism is thriving in authoritarian states. Processes of intensive neoliberalisation in the region have now been ongoing for over a decade, yet attempts at democratic consolidation have been tenuous, fragile and incomplete at best, calling into question the supposed nexus between democracy and neoliberal reform. Accordingly, there is need for a moment of pause, to take stock of the neoliberalising process in the region, and importantly, to reframe the question and reflect on how and why authoritarianism is continuing to thrive in the neoliberalising Southeast Asian state. [source] Indonesia After the Asian Crisis,ASIAN ECONOMIC POLICY REVIEW, Issue 1 2007Hal HILL Indonesia was deeply affected by the 1997,1998 crisis, more so than its East Asian neighbors. Its economic contraction was deeper and more prolonged. It was the only one to experience a (temporary) loss of macroeconomic control. It also suffered "twin crises," in the sense that its serious economic and financial problems were accompanied by regime collapse. Consequently, recovery was a slow and complex process, as new institutions had to be created, and old ones reformed under successive short-lived administrations. But this process is largely over. The directly elected president with a strong popular mandate is in power. The new institutional framework for economic policy-making is in place. Macroeconomic stability has been restored. Although growth has yet to return to pre-crisis levels, by 2004 per capita income and poverty incidence had recovered to levels prevailing in the mid-1990s, and in the circumstances economic recovery has arguably proceeded about as quickly as could reasonably have been expected. [source] The impact of the Asian Crisis on Australia's primary exports: why it wasn't so badAUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 3 2000Ron Duncan This article explores the modest impact of the Asian Crisis on Australia's primary commodity exports. Simulations using a global general equilibrium model show: (i) as capital flees Asia, investment in Australia increases and the trade deficit grows; (ii) while terms of trade deteriorate in the short run, they improve in the medium run as import demand increases in the crisis countries; (iii) exports of primary commodities expand as the crisis countries try to export more; (iv) more income-elastic primary commodities fare less well than the income-inelastic foodstuffs as incomes decline in the crisis countries; (v) Australia's relatively low dependence on manufactured exports was a buffer as manufactured exports came under heavy pressure from exports from the crisis countries. [source] Asset Bubbles, Leverage and ,Lifeboats': Elements of the East Asian CrisisTHE ECONOMIC JOURNAL, Issue 460 2000H. J. Edison Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle , and in creating fragility in global financial markets? After a brief account of the nature of the East Asian crises of 1997/8, we use the framework of highly-leveraged, fully-collaterised firms due to Kiyotaki and Moore (1997) to explore the impact of a credit crunch. The paper emphasises the fragility of equilibrium and how rapidly boom can turn to bust. [source] EXCHANGE RATE REGIMES AND MONETARY COOPERATION: LESSONS FROM EAST ASIA AND LATIN AMERICA,THE JAPANESE ECONOMIC REVIEW, Issue 3 2004TAKATOSHI ITO This paper analyses the mechanisms of, and draws lessons from, currency crises in Asian and Latin American countries in the 1990s and 2000s. In Asian countries fiscal deficits were insignificant in size, and were not part of a crisis trigger, while in Latin America they played a major role in the crisis story. Crisis management by international financial institutions has been evolving over the last 10 years, and private-sector involvement (PSI) has occupied centre-stage in efforts to reform the international financial architecture. Sovereign debts, a focus of PSI discussions, were neither a cause nor a propagation of the Asian crises. [source] On currency crises and contagionINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 2 2003Marcel Fratzscher Abstract This paper analyses the role of contagion in the currency crises in emerging markets during the 1990s. It employs a non-linear Markov-switching model to conduct a systematic comparison and evaluation of three distinct causes of currency crises: contagion, weak economic fundamentals, and sunspots, i.e. unobservable shifts in agents' beliefs. Testing this model empirically through Markov-switching and panel data models reveals that contagion, i.e. a high degree of real integration and financial interdependence among countries, is a core explanation for recent emerging market crises. The model has a remarkably good predictive power for the 1997,1998 Asian crisis. The findings suggest that in particular the degree of financial interdependence and also real integration among emerging markets are crucial not only in explaining past crises but also in predicting the transmission of future financial crises. Copyright © 2003 John Wiley & Sons, Ltd. [source] Testing for causality-in-variance: an application to the East Asian marketsINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 3 2002Guglielmo Maria Caporale Abstract In this paper we provide some empirical evidence on the casual relationship between stock prices and exchange rates volatility in four East Asian countries. In order to test for causality-in-variance, we use a GARCH model for which a BEKK representation is adopted, and then test for the relevant zero restrictions on the conditional variance parameters. We find that in the pre-crisis sample stock prices lead exchange rates negatively in Japan and South Korea (consistently with the portfolio approach) and positively in Indonesia and Thailand. In the latter two countries after the onset of the 1997 East Asian crisis the spillover effects are found to be bidirectional. Copyright © 2002 John Wiley & Sons, Ltd. [source] Are Banks Still Special?JOURNAL OF APPLIED CORPORATE FINANCE, Issue 1 2000New Evidence on Their Role in the Corporate Capital-Raising Process Bankers appear to play a special role in providing commitment-based financing to corporations. This type of lending is important not only for small firms that lack access to public debt markets but for large and medium-size companies as well. For such companies, commitment-based financing provides access to debt capital that becomes valuable when the firm has an immediate need for funding but interest rates in public debt markets are prohibitively high, or the firm is undervalued by the market. A good example of this was provided by the Asian crisis in the last quarter of 1998, when $10 billion of commercial paper was retired and $20 billion of net new commercial loans were booked. The authors also suggest that the fact that commitment-based financing is used by larger companies when they believe themselves to be undervalued in the market is probably the best explanation of why announcements of these types of loans elicit a positive stock price reaction. [source] Is China turning Latin?JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 6 2010China's balancing act between power, dependence in the lead up to global crisis Abstract China's apparent escape from the external constraints of peripheral late industrialisation in the build up to the global economic crisis of 2007,2009 has been recent and remains tenuous. Before its spectacular trade surpluses of the 2000s, China's external accounts reflected many of these constraints. Even in the midst of the surplus surge, external vulnerabilities of a peripheral nature have persisted. Besides the issue of export dependence, which is the conventional focus of most crisis-related studies on China, vulnerabilities have been more profoundly related to the dominance of foreign ownership in China's export sector and to the relatively subordinate position of this export sector within the massive rerouting of international production networks via China that followed the East Asian crisis, in large part led by Northern transnational corporations. Copyright © 2010 John Wiley & Sons, Ltd. [source] Asian Currency Crisis and the International Monetary Fund, 10 Years Later: Overview*ASIAN ECONOMIC POLICY REVIEW, Issue 1 2007Takatoshi ITO This paper is an overview of the Asian currency crisis in Thailand, Indonesia, and South Korea in 1997,1998, with an emphasis on the role of the International Monetary Fund (IMF). It provides a detailed account of the development of the crisis and analyses and evaluates the content of IMF advice and its consequences. The size of the IMF package for each of these three countries is judged to have been too small. This paper also has a comparative perspective; the Mexican crisis is reviewed as a precursor to the Asian crisis to see what the IMF learned, and how it prepared, for future crises. The causes of the crises and IMF conditionality for the post-Asian crisis countries, Russia, Brazil, Turkey, and Argentina, are also compared to the Asian crisis countries. By agreeing to maintain a fixed exchange rate, for example, the IMF is judged to have been "softer" in its approach to the post-Asian crisis countries. [source] The Asian Financial Crisis: An East Asian PerspectiveASIAN-PACIFIC ECONOMIC LITERATURE, Issue 1 2000Jesus P. Estanislao Two views dominate the academic discussion of the root cause of the Asian crisis: the ,panic-illiquidity' view and the ,moral hazard-structural' view. This paper traces the factors that contributed to the build-up of financial vulnerabilities across the affected economies and compares these two accounts of the crisis. The paper argues that the two views are complementary in that policy prescriptions derived from one that disregard the prescriptions from the other would be incomplete. It summarises the medium and long-term post-crisis policy directions at the national, regional and international levels. [source] Vietnam's Economy, After the Asian Economic CrisisASIAN-PACIFIC ECONOMIC LITERATURE, Issue 1 2000Truong Do Xuan The year 1989 marked an important turning point in Vietnam: the market mechanism began to take the place of centrally-planned resource allocation. To secure sustainable economic growth at a high level, Vietnam needs further comprehensive reform towards a market economy. The paper argues that the Asian crisis should not be blamed for the recent slowing of the economy. It also raises some other questions, in particular whether the government is still trying to fit the market mechanism into a socialist model. [source] FINANCIAL CRISES AND INTERNATIONAL STOCK MARKET VOLATILITY TRANSMISSIONAUSTRALIAN ECONOMIC PAPERS, Issue 3 2010INDIKA KARUNANAYAKE This paper examines the interplay between stock market returns and their volatility, focusing on the Asian and global financial crises of 1997,98 and 2008,09 for Australia, Singapore, the UK, and the US. We use a multivariate generalised autoregressive conditional heteroskedasticity (MGARCH) model and weekly data (January 1992,June 2009). Based on the results obtained from the mean return equations, we could not find any significant impact on returns arising from the Asian crisis and more recent global financial crises across these four markets. However, both crises significantly increased the stock return volatilities across all of the four markets. Not surprisingly, it is also found that the US stock market is the most crucial market impacting on the volatilities of smaller economies such as Australia. Our results provide evidence of own and cross ARCH and GARCH effects among all four markets, suggesting the existence of significant volatility and cross volatility spillovers across all four markets. A high degree of time-varying co-volatility among these markets indicates that investors will be highly unlikely to benefit from diversifying their financial portfolio by acquiring stocks within these four countries only. [source] | |||||||||||||