Managing financial crises: the experience in East Asia

Boorman, Jack; Lane, Timothy; Schulze‐Ghattas, Marianne; Bulı́ř, Aleš; Ghosh, Atish R.; Hamann, A. Javier; Mourmouras, Alex; Phillips, Steven

doi:10.1016/s0167-2231(01)00026-4

Cited by 18 publications

(5 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As noted earlier, many at the time believed that devaluation was expansionary because it stimulates exports and raises the price level. According to Boorman et al (2000), the IMF staff had initially expected the countries' exports to expand much more as the currencies fell in value. The sharp contraction of output in the crisis countries therefore came as a surprise.…”

Section: Underlying Macroeconomic Assumptionsmentioning

confidence: 99%

Applying the Lessons of Asia: The IMF's Crisis Management Strategy following the Global Financial Crisis

Takagi

2016

International Economic Journal

View full text Add to dashboard Cite

The paper reviews the International Monetary Fund's (IMF's) nonconcessional lending programs following the global financial crisis, with a view to understanding how the IMF applied the lessons of the Asian crisis in designing its approach to crisis management. For this purpose, the paper focuses on the 2008 programs in Hungary, Iceland, Latvia and Ukraine -the first of its kind since the early 2000s -and compares them with the 1997 programs in Indonesia, Korea and Thailand. Our analysis finds the European programs better funded and their structural conditionality more focused. Other than these, the overall thrust of the programs was similar: fiscal and monetary tightening, coupled with banking reforms. The real difference was not so much about content but about philosophy. Relative to the Asian programs, the European programs were characterized by more emphasis on ownership, greater collaboration among stakeholders, more realistic assumptions and greater transparency about the risks and the logic of policy actions, and more built-in flexibility of targets and policy options. This approach to crisis management incorporated the changes that had been made since the Asian crisis in the IMF's policies and procedures to manage capital account crises more effectively. ARTICLE HISTORY

show abstract

Section: Underlying Macroeconomic Assumptionsmentioning

confidence: 99%

Applying the Lessons of Asia: The IMF's Crisis Management Strategy following the Global Financial Crisis

Takagi

2016

International Economic Journal

View full text Add to dashboard Cite

show abstract

“…To be sure, reducing agricultural protection is politically difficult in the industrialized countries, but absent such changes, the world trading system will remain unfairly tilted against the developing countries. 73 As noted in Boorman et al (2000), the initial programs supported by the IMF in Asia, where government indebtedness was generally low, tightened fiscal policy excessively, though policy was relaxed within a short time. Policy was tightened because it was believed this would strengthen market confidence, and as a down-payment on the expected costs of financial sector restructuring.…”

Section: The Policy Issuesmentioning

confidence: 99%

Globalization and its Challenges

Iqbal¹,

Mirakhor²

2011

An Introduction to Islamic Finance

View full text Add to dashboard Cite

I stand here with deeply conflicting emotions. I am honored to be delivering this prestigious lecture. I am profoundly sad that Rudi Dornbusch, who should have delivered the Ely Lecture, died in July last year and that I am here in his place. So I would like to start by talking about Rudi.Rudi was born and grew up in Krefeld, Germany. He was an undergraduate at the University of Geneva, and completed his Ph.D. at the University of Chicago in 1971, which is where we met. He was a student of Robert Mundell, and both the subject matter -the development of the Mundell-Fleming model -and the elegance and insights of his early work reflected Mundell's influence. He taught at the University of Rochester and at the University of Chicago before accepting an offer from MIT in 1975.In 1976, soon after coming to MIT, Rudi wrote his most famous and influential theoretical article, "Expectations and Exchange Rate Dynamics". As Ken Rogoff said in his celebratory lecture on the 25 th anniversary of its publication, "The 'overshooting' paper … marks the birth of modern international macroeconomics." 3 From the late 1970s, Rudi became increasingly interested in policy issues. Within a decade, he had become one of the outstanding policy economists of our time. In his policy work he displayed the same rare talent as he had in his theoretical work, of being able to extract the essence of a complicated problem and explain it in terms that made it seem simple. Among his policy papers, the most famous is the 1994 Brookings paper with Alejandro Werner that predicted the Mexican peso crisis, but that is only one of many applied papers that repays rereading.As his policy interests grew, Rudi's fame spread. He was an indefatigable global traveller, speaker, and writer, and a frequent columnist. In his more popular articles, in his columns, and on the podium, his wit and the speed of his mind made him an exciting and formidable presence. He was one of the finest debaters and polemicists in the 1 Citigroup. This is a revised version of the Ely Lecture presented at the American Economic Association meetings in Washington, DC on January 3 2003. The Ely Lecture was originally to have been presented by Rudi Dornbusch, who died on July 25 2002.

show abstract

“…Claessens et al [1999] also found that (pre-crisis) the four countries most seriously affected by the Asian crisis ranked low on the quality of the regulatory environment in an international comparison of middle -income emerging economies in East Asia and Latin America. 16 See Boorman et al [1999]. market participants to the poor health of banks and corporates in the rest of Asia and every large G-10 bank and security house in the region was issuing weekly reports on the rising share of non-performing loans in Asian financial systems, it is very unlikely that a Fund statement claiming it was only a short-term liquidity crisis would have turned the tide (after all, the Fund's then Managing Director was already telling all who would listen that the crisis was really "a blessing in disguise").…”

Section: Introductionmentioning

confidence: 99%

Economic and Financial Crises in Emerging Market Economies

Feldstein¹

2003

View full text Add to dashboard Cite

Managing financial crises: the experience in East Asia

Cited by 18 publications

References 34 publications

Applying the Lessons of Asia: The IMF's Crisis Management Strategy following the Global Financial Crisis

Applying the Lessons of Asia: The IMF's Crisis Management Strategy following the Global Financial Crisis

Globalization and its Challenges

Economic and Financial Crises in Emerging Market Economies

Contact Info

Product

Resources

About