The Asia Crisis Causes, Policy Responses, and Outcomes

62 Pages Posted: 15 Feb 2006

See all articles by Andrew Berg

Andrew Berg

International Monetary Fund (IMF) - Developing Country Studies Division

Date Written: October 1999

Abstract

This paper tells the story of the Asian financial crisis by addressing four questions: What were the causes of the crisis, how did the crisis unfold, what were the policy responses, and what have been the outcomes? The paper takes the view that none of these questions can be understood without appreciating the fundamental vulnerabilities that left authorities without effective tools to counter sudden capital outflows. The pattern of output decline suggests that these vulnerabilities, particularly weaknesses in domestic financial systems, played a larger role than tight monetary policy in determining outcomes.

Keywords: Asia crisis interest rates and exchange rates currency crises balance of payments crises

JEL Classification: O53 F31 F32 F34 G20 E52 E65

Suggested Citation

Berg, Andrew, The Asia Crisis Causes, Policy Responses, and Outcomes (October 1999). IMF Working Paper, Vol. , pp. 1-62, 1999. Available at SSRN: https://ssrn.com/abstract=880665

Andrew Berg (Contact Author)

International Monetary Fund (IMF) - Developing Country Studies Division ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-8843 (Phone)
202-589-8843 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
764
rank
29,980
Abstract Views
2,732
PlumX Metrics