Financial Crises: Nine Lessons from East Asia (original) (raw)

The Asian Financial Crisis: What Happened, and What Is to Be Done

1999

We identify the Asian financial crisis to be the result of the instabilities of short-term capital flows, inadequate prudential supervision in the financial markets of the developing countries, mistaken commitments to the fixed exchange rate regime, lack of international coordination in the regulation of international financial markets, absence of an international mechanism for the orderly working out of international debt, and inappropriate "rescue" packages imposed by the IMF. We recommend 30 policy reforms to make the international economy more resilient to financial turmoil, and to reduce the costs of such turmoil. We conclude that there is little particularly 'Asian' about the Asian financial crisis. Even though official Washington, led by the IMF, proclaimed the crisis to be one of Asian capitalism, the more generic character of the crisis became all too clear during 1998, as the crisis spread to Russia, South Africa, and Brazil. Rather than an Asian crisis, ...

Managing financial crises: the experience in East Asia

2000

The Asian financial crisis of 1997–98 was one of the most dramatic economic events of recent times, which raised many questions regarding the appropriate policy response to financial crises. This paper reviews the experience of this crisis, focusing on the overall strategy of crisis management and the way that strategy was implemented including, with regard to official and private financing, structural reforms, and monetary and fiscal policies.