The Asian Financial Crisis: Causes, Contagion and Consequences (Global Economic Institutions, Series Number 2)

The first theoretical analysis of the Asian Financial Crisis--perhaps the single most important economic event of the 1990s--starts by presenting a factual and analytic overview of what happened. It goes on to consider why crisis turned into collapse, speculative attacks, and contagion and finishes with a round table discussion of policy issues. The distinguished contributors are from organizations including IMF, the World Bank and the Bank for International Settlements. This is vital reading for policy professionals as well as researchers and graduate students in a wide range of disciplines. Introduction / Pierre-richard Agénor [and Others] -- Pt. 1. General Accounts. 1. The Role Of Macroeconomic And Financial Sector Linkages In East Asia's Financial Crisis / Pedro Alba [and Others] ; 2. The Asian Crisis: Lessons From The Collapse Of Financial Systems, Exchange Rates And Macroeconomic Policy / Jenny Corbett And David Vines ; 3. Are Capital Inflows To Developing Countries A Vote For Or Against Economic Policy Reforms? / Michael P. Dooley ; 4. The Asian Crisis: An Overview Of The Empirical Evidence And Policy Debate / Giancarlo Corsetti, Paolo Pesenti And Nouriel Roubini --pt. 2. Theoretical Contributions. 5. Capital Markets And The Instability Of Open Economies / Philippe Aghion, Philippe Bacchetta And Abhijit Banerjee ; 6. Volatility And The Welfare Costs Of Financial Market Integration / Pierre-richard Agénor And Joshua Aizenman ; 7. A Theory Of The Onset Of Currency Attacks / Stephen Morris And Hyun Song Shin -- Pt. 3. Contagion. 8. Contagion: Monsoonal Effects, Spillovers And Jumps Between Multiple Equilibria / Paul Masson ; 9 Contagion And Trade: Why Are Currency Crises Regional? / Reuven Glick And Andrew K. Rose ; 10. Competition, Complementarity And Contagion In East Asia / Ishac Diwan And Bernard Hoekman -- Pt. 4. Policy Responses. 11. Coping With Crises: Is There A 'silver Bullet'? / Amar Bhattacharya And Marcus Miller ; 12. Must Financial Crises Be This Frequent And This Painful? / Joseph Stiglitz ; 13. Round Table Discussion / Richard Portes, Phillip Turner And Charles A. Goodhart -- Index. Edited By Pierre-richard Agénor ... [et Al.]. Includes Bibliographical References And Index. "This volume presents the first overall analysis, both theoretical and empirical, of the Asian Financial Crisis. It draws out the general lessons of an event whose potential long-term effects have been likened to the Crash of 1929." "Part One presents a factual and analytic overview of what happened: the role of 'vulnerability'; the interconnection between currency crises and financial crises; and why crisis turned into collapse." "Part Two considers more detailed issues, including: how the inflation of non-traded goods prices created vulnerability; welfare-reducing capital inflow owing to under-regulated financial markets; and the onset of speculative attacks." "Part Three assesses the many aspects of contagion, including both the channels through which it occurs and the role of geographical proximity."--Jacket Private capital flows to developing countries increased sixfold over the years 1990 to 1996.