There are four factors involved in the current financial crisis in Asia that have caused surprise. Since the Latin American debt crisis was thought to have been aggravated by the dominance of syndicated private bank lending, borrowers were encouraged to increase private direct investment flows....

Mainstream authors rediscovered Keynes' liquidity trap as an axplanation of the deflationary slump that has plagued the Japanese economy in the 1990s. However, they give analytical support to the concept in terms of the quantity theory and time preference, theories that Keynes rejected. This...