With the financial bomb hitting most of the East Asian economies the financial structure of most of the economies collapsed. Economies like Singapore, Indonesia, Thailand, Malaysia, Philippines were heavily affected, we will provide a brief insight into these economies during the crisis period....

Increasing capital inflows and sustained interest rate spreads were important features in East Asia prior to the crisis of 1997-98. But why did capital inflows fail to eliminate interest rate differentials? Why were inflows associated with rising domestic interest rates that then perpetuated the...

To what extent and within what time frame did countries in East Asia recover from the 1997-98 crisis, and, if there has been a recovery, can it be sustained? Drawing on the available evidence, this paper attempts to answer these questions. By implication, however, it also has something to say...

To what extent and within what time frame did countries in East Asia recover from the 1997-98 crisis, and, if there has been a recovery, can it be sustained? Drawing on the available evidence, this paper attempts to answer these questions. By implication, however, it also has something to say...

Why are some currency crises followed by economic contractions while others are not? This paper is an attempt at answering this query. In particular, we investigate two closely related questions. First, we explore whether there is a difference in the output effects of a devaluation during...

The co-occurrence of banking and currency crises has been found to be the norm during the late 1980s and early 1990s. While these "twin crises" have inspired a number of recent theoretical and empirical contributions to the literature on financial crises in developing economies, much less...

Given its potentially global significance and the attention that there tends to be towards things that go wrong, it is hardly surprising that most of the literature dealing with economic events in East Asia during recent years has concentrated on the crisis period of 1997 and 1998. This work has...

Abstract In this paper we ask whether countries can influence their exposure to changes in global financial conditions. Specifically, we show that even though we can model cross-country capital flows via a global factor that closely tracks changes in global financial conditions, there is a large...

The global crisis highlights the continued vulnerability of developing countries to shocks from advanced economies. Just a few years after the global crisis, the eurozone sovereign debt crisis has emerged as the single biggest threat to the global outlook. In this paper, we apply the event study...

Currency and financial turmoils in international capital markets have been the focus of an extensive theoretical research which started around 30 years ago. This paper provides a synthetic overview of this theoretical modeling. We analyze the basic analytical framework corresponding to the...