The Asia Crisis: Causes, Policy Responses, and Outcomes

October 1, 1999

Preview Citation

Format: Chicago

Andrew Berg. The Asia Crisis: Causes, Policy Responses, and Outcomes, (USA: International Monetary Fund, 1999) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper tells the story of the Asian financial crisis by addressing four questions: What were the causes of the crisis, how did the crisis unfold, what were the policy responses, and what have been the outcomes? The paper takes the view that none of these questions can be understood without appreciating the fundamental vulnerabilities that left authorities without effective tools to counter sudden capital outflows. The pattern of output decline suggests that these vulnerabilities, particularly weaknesses in domestic financial systems, played a larger role than tight monetary policy in determining outcomes.

Subject: Banking, Commercial banks, Exchange rates, External debt, Financial crises, Financial institutions, Foreign exchange, Real exchange rates

Keywords: Asia and Pacific, Asia crisis, Balance of payments crises, Banking system, Commercial banks, Crisis country, Currency crises, Current account, Exchange rates, Financial system, Flight to quality, Interest rates and exchange rates, Nominal interest rate, Real exchange rates, Short-term debt, WP

Publication Details

Pages:

62
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/138
Stock No:

WPIEA1381999
ISBN:

9781451855968
ISSN:

1018-5941

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