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Regional and Global Responses to the Asian Crisis
Author(s) -
GRENVILLE Stephen
Publication year - 2007
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/j.1748-3131.2007.00049.x
Subject(s) - economics , capital flows , capital (architecture) , development economics , economic policy , political science , market economy , history , liberalization , archaeology
This paper examines how economic policy‐making changed as a result of the Asian crisis of 1997–1998, in the countries affected, in the region, and at the global level. It is perhaps surprising how little change has occurred in the broad approach to economic policy, but there is a much greater awareness of the vulnerabilities posed by large international capital flows. The broad tenets of the Washington Consensus, with its market‐based policies, remain in place, but there is a recognition that well‐functioning markets require complex institutions, rules, and procedures, and that these take time and effort to develop. Most of this institutional development will have to take place at the national level, but regional arrangements can offer support, and multilateral agencies, such as the International Monetary Fund, have learned from the crisis.