This paper argues that fundamental weaknesses in Asian financial systems that had been masked by rapid growth were at the root of East Asia's 1997 currency and financial crisis. These weaknesses were caused by the lack of incentives for effective risk management created by implicit or explicit...

This paper assesses the relationship between money and credit and episodes of sharp depreciation in East Asia by (i) examining growth rates of money and credit variables around depreciation episodes; (ii) estimating the impact of money and credit variables on the probability of a share...