Have The Lessons Learned from The Asian Financial Crisis Been Applied Effectively in Asian Economies?

Some Lessons of the East Asian Financial Crisis

I would like to discuss improvements in our understanding of economic development, in particular the emergence of what is sometimes called the "post-Washington consensus." My remarks elaborate on two themes. The first is that we have come to a better understanding of what makes markets work well. The Washington consensus held that good economic performance required liberalized trade, macroecono...

Financial Contagion in the East Asian Crisis

In this chapter, we analyze empirically the existence and extent of financial contagion in the East Asian crisis. We define financial contagion as a significant increase in correlation of financial variables after controlling fundamentals and common shocks, and we develop an autoregressive model to measure contagion. In particular, we attempt to exclude the common effects of the crisis in South...

Flow-on effects from the East Asian financial crisis on Pacific island economies

Asian Financial Crisis: The South Korean Experience

Why was it that the Korean economy, which had been envied and imitated by other developing economies for the past 30 years, suddenly spiraled into a currency-induced crisis late in 1997? How was it possible that such a vibrant economy, which had been developing so rapidly, displaying in fact the most rapid development amongst the Asian nations, was suddenly overcome by such a severe economic do...

Corporate Response to Distress: Evidence from the Asian Financial Crisis

This paper provides a comprehensive examination of corporate responses to financial distress during an economy-wide crisis, specifically through the restructuring of assets (through asset sales, mergers, or liquidations) and/or liabilities. Using firm-level data from five countries hardest hit by the East Asian financial crisis of 1997-98, this study contrasts the effects that financial and cor...