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Sources Of Asian Currency Crisis

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  • Muhd-Zulkhibri Abdul Majid

    (Central Bank of Malaysia)

Abstract

This study examines the sources of currency crises in ASEAN. The empirical findings indicate that reserve inadequacy, increase of bank’s claims on private sector, deteriorating trade balance and misalignment of real exchange rate increase the probability of a speculative attack on a currency. The results also suggest that the currency crises could be contagious. The significant variables are closely related to the external factors and thus, indicate the openess of the ASEAN-4 economy. Hence, we could conclude that there is a linkage between the economic fundamentals and currency crises in ASEAN

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File URL: http://128.118.178.162/eps/if/papers/0405/0405020.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Finance with number 0405020.

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Length: 19 pages
Date of creation: 19 May 2004
Date of revision:
Handle: RePEc:wpa:wuwpif:0405020

Note: Type of Document - pdf; pages: 19
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Web page: http://128.118.178.162

Related research

Keywords: currency crisis; Asian; probit;

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