Japanese Asset Prices, Yen-Dollar Exchange Rates and The Currency Crisis in Korea

Changkyu Choi, Dong-Geun Han and Gang-Soo Jun
Additional contact information
Dong-Geun Han: Yeungnam University
Gang-Soo Jun: Catholic University of Daegu

Korean Economic Review, 2001, vol. 17, 271-286

Abstract: Japanese banks' lending to Korea was influenced by Japanese asset prices and yen-dollar exchange rates. Before the Korean currency crisis in 1997, Japanese asset prices declined and yen depreciated. This made the BIS ratio of Japanese banks lower and thus enforced Japanese banks to withdraw their lending from Korea to keep up with the BIS ratio of Japanese banks. Japanese banks led US and European banks in withdrawing their lending from Korea. The Japanese banks' suspension of rollover to Korea directly caused the liquidity shortage and thus triggered the currency crisis in Korea.

Keywords: Asset prices; Yen-Dollar exchange rates; currency crisis; Japanese banks lending (search for similar items in EconPapers)
JEL-codes: F31 F34 (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
http://keapaper.kea.ne.kr/RePEc/kea/keappr/KER-200112-17-2-05.pdf (application/pdf)

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:kea:keappr:ker-200112-17-2-05

Access Statistics for this article

Korean Economic Review is currently edited by Kyung Hwan Baik

More articles in Korean Economic Review from Korean Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by KEA (kea1952@kea.ne.kr).