What Caused the Asian Currency and Financial Crisis? Part II: The Policy Debate

Giancarlo Corsetti, Paolo Pesenti and Nouriel Roubini ()

No 6834, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The paper explores the view that the Asian currency and financial crises in 1997 and 1998 reflected structural and policy distortions in the countries of the region, even if market overreaction and herding caused the plunge of exchange rates, asset prices, and economic activity to be more severe than warranted by the initial weak economic conditions. The second part of the paper presents a reconstruction of the Asian meltdown -- from the antecedents in 1995-96 to the recent developments in the summer of 1998 -- in parallel with a survey of the debate on the strategies to recover from the crisis, the role of international intervention, and the costs and benefits of capital controls.

JEL-codes: F31 F33 (search for similar items in EconPapers)
Date: 1998-12
New Economics Papers: this item is included in nep-ifn
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (104)

Published as (Published as "What Caused the Asian Currency and Financial Crisis?") Japan and the World Economy, Vol. 11 (1999): 305-373.

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Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:6834

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