Advanced Search
MyIDEAS: Login to save this paper or follow this series

Financial Crisis, Capital Outflows and Policy Responses: Simple Analytics and Examples from East Asia

Contents:

Author Info

  • Ramkishen Rajan

    ()
    (School of Economics, University of Adelaide, Australia)

Abstract

Financial crises seem to have become the norm rather than the exception since 1992. In recognition of the frequency with which countries seem to be hit by financial crises, any typical undergraduate course in Money and Banking nowadays includes a section on financial crisis in emerging economies. While these texts offer useful and up-to-date discussions on concepts such as financial crises and sterilization of capital flows, there does not seem to be any attempt to link the discussion of these contemporary issues to the age-old analytics of the money market and money multiplier. This paper examines the impact of a crisis of confidence and resultant capital outflows from a small and open economy, and the possible policy options in response to such outflows using simple tools and definitions that will be familiar to any Money and Banking/Intermediate Macroeconomics student. To facilitate the discussion, examples are drawn from the East Asian crisis of 1997-98 (Indonesia, Korea, Malaysia and Thailand), though the analysis remains pertinent to emerging economies in general.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. 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.
File URL: http://www.adelaide.edu.au/cies/papers/0311.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2003-11.

as in new window
Length: 35 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:adl:cieswp:2003-11

Contact details of provider:
Postal: Adelaide SA 5005
Phone: (+ 61 8) 8303 5672
Fax: (+ 61 8) 8223 1460
Email:
Web page: http://www.adelaide.edu.au/cies/
More information through EDIRC

Related research

Keywords: Capital Flows; East Asia; Financial Crisis; Monetary Base; Money Supply; Money Multiplier;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Reinhart, Carmen & Kaminsky, Graciela, 1999. "The twin crises: The causes of banking and balance of payments problems," MPRA Paper 14081, University Library of Munich, Germany.
  2. Jason Furman & Joseph E. Stiglitz, 1998. "Economic Crises: Evidence and Insights from East Asia," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 1-136.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ouyang, Alice Y. & Rajan, Ramkishen S. & Willett, Thomas D., 2010. "China as a reserve sink: The evidence from offset and sterilization coefficients," Journal of International Money and Finance, Elsevier, vol. 29(5), pages 951-972, September.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:adl:cieswp:2003-11. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dmitriy Kvasov).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.