IDEAS home Printed from https://ideas.repec.org/a/jge/journl/513.html
   My bibliography  Save this article

South –East Asian Crisis- An Important Lesson for the Global Economy

Author

Listed:
  • Prerna Jain
  • Pragati Jain

Abstract

Crises are an intrinsic feature of the market–oriented credit and financial system. Business cycles showing periods of boom and bust will continue to occur, only the intensity shall matter. An unprecedented crisis that erupted in five Asian economies: Indonesia, Malaysia, the Phillipines, the Republic of Korea and Thailand, in mid 1997-1998 raised concern about the stability of the “Global Financial Architecture.” The clear evidence emerged of a rapid and unsustainable buildup of investment in fixed assets financed by excessive borrowing. This investment-spending spree resulted in poor profitability, reflected in low and declining returns on equity and on capital employed. The severity of the crisis in the Asian region was so great that some other countries in the world – Brazil and Russia, in particular also got affected by the contagion.

Suggested Citation

  • Prerna Jain & Pragati Jain, 2009. "South –East Asian Crisis- An Important Lesson for the Global Economy," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 5(1), pages 25-36, March.
  • Handle: RePEc:jge:journl:513
    as

    Download full text from publisher

    File URL: http://www.rcssindia.org/jge
    Download Restriction: Only to subscribers

    File URL: http://www.rcssindia.org/jge
    Download Restriction: Not freely downloadable

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Indian Economy; South east Asia; market crisis;

    JEL classification:

    • F1 - International Economics - - Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jge:journl:513. 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: (Dr J K Sachdeva). General contact details of provider: http://www.rcssindia.org .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.