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Regional and Global Responses to the Asian Crisis

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  • Stephen GRENVILLE

Abstract

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.

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  • Stephen GRENVILLE, 2007. "Regional and Global Responses to the Asian Crisis," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(1), pages 54-70, June.
    • Handle: RePEc:bla:asiapr:v:2:y:2007:i:1:p:54-70
    DOI: 10.1111/j.1748-3131.2007.00049.x
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    2. Stephen Grenville, 2017. "The Asian crisis: what did we learn and when did we learn it?," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 31(2), pages 30-44, November.
    3. Giampiero M. Gallo & Margherita Velucchi, 2009. "Market interdependence and financial volatility transmission in East Asia," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 14(1), pages 24-44.

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