The Balance Sheet Effects and Macroeconomic Development in the Pacific Region

Akira Kohsaka and Masahiro Enya
Additional contact information
Akira Kohsaka: Professor of Economics, Osaka School of International, Public Policy Osaka, University, 1-31 Machikaneyama-cho, Toyonaka, Japan 560-0043
Masahiro Enya: Associate Professor of Economics, Osaka International University 3-50-1, Sugi, Hirakata, Osaka Japan 573-0192

Asian Economic Papers, 2007, vol. 6, issue 1, pages 101-129

Abstract: This paper focuses on balance sheet adjustments across the recent boom-bust cycles in the Pacific region along with structural changes in sectoral balance sheets and policy environments. Comparing empirical regularities across industrial as well as East Asian countries over the past decades, our analysis shows that asset price busts and concurrent macroeconomic developments in East Asia share some common patterns, identified using event analysis, with industrial economies.Regarding the macroeconomic impact of asset market price busts, we generally observed qualitatively similar features between industrial countries and East Asian emerging markets. Major differences between the two groups appear in the magnitude of swings and the speed of recoveries of the key macroeconomic variables. Negative impacts on investment were stronger in East Asia, but quicker recoveries were their features, whereas private consumption was commonly rather robust to asset market turmoil. (c) 2007 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Date: 2007

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdfplus/10.1162/asep.2007.6.1.101 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:tpr:asiaec:v:6:y:2007:i:1:p:101-129

Ordering information: This journal article can be ordered from
http://www.mitpressjournals.org/loi/asep

Access Statistics for this article

Asian Economic Papers is edited by Jeffrey D. Sachs, Yunjong Wang and Wing Thye Woo

More articles in Asian Economic Papers from MIT Press
Series data maintained by Christopher F. Baum ().