The Asian Crisis in Context

Barry Bosworth

International Finance, 1998, vol. 1, issue 2, 289-310

Abstract: The crises in Asia have served to highlight the dangers inherent in the current expansion of the international financial system. In the aftermath of the Mexican crisis, many economists pointed to its unique characteristics in arguing that it did not represent a systemic threat. That argument seems wrong today. Allowing the free flow of financial capital across national borders exposes countries to the inevitable risks of runs against their currencies, just as individual banks are threatened with runs domestically. Yet the international community does not appear willing to provide the magnitude of funds required to support an effective lender‐of‐last‐resort on a global basis. Developing countries need to manage the risks of capital market opening with an understanding that they will be forced to rely primarily on their own resources in the event of a crisis.

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/1468-2362.00013

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: https://EconPapers.repec.org/RePEc:bla:intfin:v:1:y:1998:i:2:p:289-310

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1367-0271

Access Statistics for this article

International Finance is currently edited by Benn Steil

More articles in International Finance from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().