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The Asian Financial Crisis: An East Asian Perspective
Author(s) -
Estanislao Jesus P.,
Manzano George N.,
Pasadilla Gloria O.
Publication year - 2000
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/1467-8411.00072
Subject(s) - moral hazard , financial crisis , perspective (graphical) , east asia , crisis management , hazard , financial system , economics , political science , development economics , macroeconomics , market economy , incentive , china , management , chemistry , organic chemistry , artificial intelligence , computer science , law
Two views dominate the academic discussion of the root cause of the Asian crisis: the ‘panic‐illiquidity’ view and the ‘moral hazard‐structural’ view. This paper traces the factors that contributed to the build‐up of financial vulnerabilities across the affected economies and compares these two accounts of the crisis. The paper argues that the two views are complementary in that policy prescriptions derived from one that disregard the prescriptions from the other would be incomplete. It summarises the medium and long‐term post‐crisis policy directions at the national, regional and international levels.