SOURCES OF ASIAN CURRENCY CRISIS

Muhd-Zulkhibri Abdul Majid ()

International Finance from EconWPA

Abstract: This study examines the sources of currency crises in ASEAN. The empirical findings indicate that reserve inadequacy, increase of bank’s claims on private sector, deteriorating trade balance and misalignment of real exchange rate increase the probability of a speculative attack on a currency. The results also suggest that the currency crises could be contagious. The significant variables are closely related to the external factors and thus, indicate the openess of the ASEAN-4 economy. Hence, we could conclude that there is a linkage between the economic fundamentals and currency crises in ASEAN

Keywords: currency crisis; Asian; probit (search for similar items in EconPapers)
JEL-codes: F3 F4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fin, nep-ifn and nep-sea
Date: 2004-05-19
Note: Type of Document - pdf; pages: 19
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