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

Impact of Eurozone Financial Shocks on Southeast Asian Economies

Contents:

Author Info

  • Menon, Jayant

    ()
    (Asian Development Bank)

  • Ng, Thiam Hee

    ()
    (Asian Development Bank)

Abstract

Five years after the Global Financial Crisis, the economies of the United States (US) and the eurozone continue to struggle. How will Southeast Asian economies be affected should there be a further deterioration in conditions in the eurozone? In this paper, we present estimates using a Global Vector Autoregression model of the direct impacts in Southeast Asia of a further shock to the eurozone. We find that although the direct impacts are likely to be muted, it could trigger a much larger adjustment should it lead to a reassessment of risks and asset valuations. This is a real possibility given that vulnerability in the region has increased following massive inflows of capital and the build-up of debt related to successive bouts of quantitative easing, initially in the US and now in Japan. In light of a possible reassessment of risks and asset valuations, and with the International Monetary Fund’s resources already stretched, there is a pressing need to improve regional financial safety nets, which are currently unworkable, to deal with the fallout.

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://aric.adb.org/pdf/workingpaper/WP116_Menon_Ng_Eurozone_shocks.pdf
File Function: Full text
Download Restriction: no

Bibliographic Info

Paper provided by Asian Development Bank in its series Working Papers on Regional Economic Integration with number 116.

as in new window
Length: 40 pages
Date of creation: 01 Aug 2013
Date of revision:
Handle: RePEc:ris:adbrei:0116

Contact details of provider:
Postal: P.O. Box 789, Manila
Fax: (63-2) 636-2648
Email:
Web page: http://www.adb.org
More information through EDIRC

Related research

Keywords: eurozone crisis; asset bubbles; contagion; regional financial safety nets; Chiang Mai Initiative; ASEAN; ASEAN+3;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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:ris:adbrei:0116. 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: (Ivan B. de Leon).

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.