Reinhart, Carmen (2001): Private inflows when crises are anticipated: a case study of Korea (A comment). Published in: Financial Crises in Emerging Markets (2001): pp. 275-279.
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Abstract
Comment: Michael Dooley and Inseok Shin make a compelling case that the Korean financial crisis of 1997 was not the consequence of a misaligned exchange rate and external imbalance, nor was it the classic first-generation credit-financed fiscal deficit stressed by Krugman (1979). The authors also cast doubt on explanations of the Korean crisis that rely exclusively on a liquiditycrisis/banking panic story, as in Goldfajn and Valdes (1995), or on earlier models with self-fulfilling expectations (see, for instance, Obstfeld, 1994). Instead, they argue that the Korean banking and currency crises had their origins in the financial liberalization that took place in the earlier part of the 1990s.
| Item Type: | MPRA Paper |
|---|---|
| Original Title: | Private inflows when crises are anticipated: a case study of Korea (A comment) |
| Language: | English |
| Keywords: | financial crisis Korea liberalization banking panic |
| Subjects: | F - International Economics > F3 - International Finance > F30 - General G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets |
| Item ID: | 13353 |
| Depositing User: | Carmen Reinhart |
| Date Deposited: | 12 Feb 2009 05:39 |
| Last Modified: | 02 Oct 2019 16:56 |
| References: | Calvo, Guillermo A., Leonardo Leiderman, and Carmen M. Reinhart (1994). "Capital Inflows to Latin America: The 1970s and 1990s." In E. Bacha, ed., Economics in a Changing World, Vol. 4: Development, Trade and the Environment, Proceedings of the Tenth lEA World Congress. London: Macmillan. Dooley, Michael P (2000). "A Model of Crises in Emerging Markets," Economic Journal 110(460):256-272. Goldfajn, Han and Rodrigo Valdes (1995). "Balance-of-Payments Crises and Capital Flows: The Role of Liquidity." Mimeo, Massachusetts Institute of Technology. Kaminsky, Graciela and Carmen M. Reinhart (1999). "The Twin Crises: The Causes of Banking and Balance of Payments Problems," American Economic Review 89(3):473-500. -- (2000). "Bank Lending and Contagion: Evidence from the Asian Crisis." In T. Ito and A. Krueger, eds., Regional and Global Capital Flows: Macroeconomic Causes and Consequences. Chicago: University of Chicago Press for the NBER. Krugman, Paul (1979). "A Model of Balance-of-Payments Crises." Journal of Money, Credit, and Banking 11(3):311-325. Montiel, Peter and Carmen M. Reinhart (August 1999). "Do Capital Controls and Macroeconomic Policies Influence the Volume and Composition of Capital Flows? Evidence from the 1990s,"Journal of International Money and Finance 18(4):619-635. Obstfeld, Maurice (1994). "The Logic of Currency Crises." NBER Working Paper No. 4640. Cambridge, MA. --(1996). "Models of Currency Crises with Self-fulfilling Features" European Economic Review 40(1):1037-1047. ' |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/13353 |
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