Sayuri SHIRAI (Faculty of Policy Management, Keio University, Japan)
Abstract
The world economy is currently suffering a global financial and economic crisis that has become severe since the second half of 2008. This global financial situation was triggered by?the advent of the subprime mortgage crisis in the United States that became apparent in mid-2007.?Europe was the first area affected, thereafter its contagion spread to the rest of the world. East Asia?did not escape. The nature of the current global financial crisis is unprecedented in terms of (1) the?scale of the problems in the financial sector (particularly in the United States and Europe), (2) the?depth and speed of contagion worldwide (through financial sector and trade linkages), and (3) the?severity of the recession (particularly in emerging market economics, small countries, and East?Asia). This paper analyzes, mainly, cross-border capital movements by looking at the pre-crisis?features of the United States as the crisis hypocenter and its relationships with other countries.?Detailed observations are presented on cross-border investment in stocks and debt securities, as well?as banking activities. The paper then sheds light on the impact of the subprime mortgage crisis on?cross-border capital movements in the United States, the United Kingdom, and East Asia. Other?performance indicators such as exchange rates, economic growth and international trade are also?discussed in the case of East Asia. The paper examines several challenges posed for East Asia by?the crisis.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Article provided by Economic Research Institute for ASEAN and East Asia in its journal ERIA Discussion Paper Series.
Find related papers by JEL classification: G1 - Financial Economics - - General Financial Markets G2 - Financial Economics - - Financial Institutions and Services F2 - International Economics - - International Factor Movements and International Business F3 - International Economics - - International Finance