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Interpreting the Asian Financial Crisis: Open Issues in Theory and Policy

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  • Giancarlo Corsetti

Abstract

This paper discusses the theoretical and policy debate on the crisis in Southeast Asia. After contrasting competing interpretations of the crisis, the paper presents stylized facts about fundamental imbalances in the economies of the region before the currency collapse. Then, it reviews current theories of currency and financial instability, assessing them as interpretive schemes of the crisis. In light of facts and theories, a final section discusses emerging policy issues, including both structural and cyclical aspects of the recovery.

Suggested Citation

  • Giancarlo Corsetti, 1998. "Interpreting the Asian Financial Crisis: Open Issues in Theory and Policy," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 18-63.
    • Handle: RePEc:wsi:adrxxx:v:16:y:1998:i:02:n:s0116110598000074
    DOI: 10.1142/S0116110598000074
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