The Asia Crisis: Causes, Policy Responses, and Outcomes

Author/Editor:

Andrew Berg

Publication Date:

October 1, 1999

Electronic Access:

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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.

Series:

Working Paper No. 1999/138

Subject:

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

English

Publication Date:

October 1, 1999

ISBN/ISSN:

9781451855968/1018-5941

Stock No:

WPIEA1381999

Pages:

62

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