IDEAS home Printed from https://ideas.repec.org/a/sae/intare/v5y2002i1p27-49.html
   My bibliography  Save this article

Beyond the IMF Medicine: Thailand's Response to the 1997 Financial Crisis

Author

Listed:
  • Shalendra D. Sharma

Abstract

From the summer of 1997 through summer 1999, Thailand's economy took a steep plunge into recession and economic collapse. Only in the third-quarter of 1999, did the economy give signs of a fragile, if hesitant recovery. Almost immediately the International Monetary Fund(IMF) took credit, arguing that its policies and programs were finally producing results. How valid is this claim. This paper argues that the IMF policies by itself cannot explain the recovery. Indeed, if the Thai government continued to follow the IMF's orthodox prescriptions, it would have dragged the economy further into crisis. Rather, it is argued that the Chuan administration deserves much credit for the recovery. By rejecting some of the IMF's mis-guided policies and by its effective management of the crisis, the Chuan government laid the basis for a gradual and sustained recovery.

Suggested Citation

  • Shalendra D. Sharma, 2002. "Beyond the IMF Medicine: Thailand's Response to the 1997 Financial Crisis," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 5(1), pages 27-49, March.
    • Handle: RePEc:sae:intare:v:5:y:2002:i:1:p:27-49
    DOI: 10.1177/223386590200500102
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/223386590200500102
    Download Restriction: no
    File URL: https://libkey.io/10.1177/223386590200500102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ha-Joon Chang & Gabriel Palma & D. Hugh Whittaker (ed.), 2001. "Financial Liberalization and the Asian Crisis," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-51862-9.
    2. Stephan Haggard, 2000. "Political Economy of the Asian Financial Crisis, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 107, October.
    3. International Monetary Fund, 2000. "Thailand: Selected Issues," IMF Staff Country Reports 2000/021, International Monetary Fund.
    4. George Soros, 1999. "The International Financial Crisis," Challenge, Taylor & Francis Journals, vol. 42(2), pages 58-76, March.
    5. Alba, Pedro & Hernandez, Leonardo & Klingebiel, Daniela, 1999. "Financial liberalization and the capital account : Thailand, 1988-97," Policy Research Working Paper Series 2188, The World Bank.
    6. Ijaz Nabi & Jayasankar Shivakumar, 2001. "Back from the Brink : Thailand's Response to the 1997 Economic Crisis," World Bank Publications - Books, The World Bank Group, number 13973, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ethan Kaplan & Dani Rodrik, 2002. "Did the Malaysian Capital Controls Work?," NBER Chapters, in: Preventing Currency Crises in Emerging Markets, pages 393-440, National Bureau of Economic Research, Inc.
    2. Graham Bird & Ramkishen S. Rajan, 2004. "Does devaluation lead to economic recovery or contraction? Theory and policy with reference to Thailand," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(2), pages 141-156.
    3. Thomas D. Willett & Ekniti Nitithanprapas & Isriya Nitithanprapas & Sunil Rongala, 2004. "The Asian Crises Reexamined," Asian Economic Papers, MIT Press, vol. 3(3), pages 32-87.
    4. Morris Goldstein & Timothy F. Geithner & Paul Keating & Yung Chul Park, 2003. "IMF Structural Programs," NBER Chapters, in: Economic and Financial Crises in Emerging Market Economies, pages 363-458, National Bureau of Economic Research, Inc.
    5. Jomo K.S., 2005. "Malaysia´S September 1998 Controls: Background, Context, Impacts, Comparisons, Implications, Lessons," G-24 Discussion Papers 36, United Nations Conference on Trade and Development.
    6. Martínez, Juan & Santiso, Javier, 2003. "Financial Markets and Politics: The Confidence Game in Latin American Emerging Economies," MPRA Paper 12909, University Library of Munich, Germany.
    7. Gimet, Celine, 2007. "Conditions necessary for the sustainability of an emerging area: The importance of banking and financial regional criteria," Journal of Multinational Financial Management, Elsevier, vol. 17(4), pages 317-335, October.
    8. Carol Alexander & Anca Dimitriu, 2003. "Equity Indexing: Conitegration and Stock Price Dispersion: A Regime Switiching Approach to market Efficiency," ICMA Centre Discussion Papers in Finance icma-dp2003-02, Henley Business School, University of Reading.
    9. Soedarmono, Wahyoe & Machrouh, Fouad & Tarazi, Amine, 2013. "Bank competition, crisis and risk taking: Evidence from emerging markets in Asia," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 23(C), pages 196-221.
    10. Pratap, Sangeeta & Urrutia, Carlos, 2004. "Firm dynamics, investment and debt portfolio: balance sheet effects of the Mexican crisis of 1994," Journal of Development Economics, Elsevier, vol. 75(2), pages 535-563, December.
    11. ManYing Kang & Marcel Ausloos, 2017. "An Inverse Problem Study: Credit Risk Ratings as a Determinant of Corporate Governance and Capital Structure in Emerging Markets: Evidence from Chinese Listed Companies," Economies, MDPI, vol. 5(4), pages 1-23, November.
    12. Kane, Edward J. & Klingebiel, Daniela, 2004. "Alternatives to blanket guarantees for containing a systemic crisis," Journal of Financial Stability, Elsevier, vol. 1(1), pages 31-63, September.
    13. Naiwei Chen & Meiya Chang, 2013. "Financial Crisis and Corporate Liquidity: Implications for Emerging Markets," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 20(1), pages 1-30, March.
    14. Fallon, Peter*Hon, Vivian*Qureshi, Zia*Ratha, Di, 2001. "Middle-income countries - development challenges and growing global role," Policy Research Working Paper Series 2657, The World Bank.
    15. Burnside, Craig & Eichenbaum, Martin & Rebelo, Sergio, 2001. "Hedging and financial fragility in fixed exchange rate regimes," European Economic Review, Elsevier, vol. 45(7), pages 1151-1193.
    16. Salahuddin, Sultan & Kashif, Muhammad & Rehman, Mobeen Ur, 2020. "Time Varying Stock Market Integration and Diversification Opportunities within Emerging and Frontier Markets," Public Finance Quarterly, Corvinus University of Budapest, vol. 65(2), pages 168-195.
    17. Marco Rocco, 2011. "Extreme value theory for finance: a survey," Questioni di Economia e Finanza (Occasional Papers) 99, Bank of Italy, Economic Research and International Relations Area.
    18. I.Igal Magendzo, 2002. "Are Devaluations Really Contractionary?," Working Papers Central Bank of Chile 182, Central Bank of Chile.
    19. Marcin Chlebus, 2014. "One-day prediction of state of turbulence for financial instrument based on models for binary dependent variable," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 37.
    20. Matthieu Bussière, 2013. "Balance of payment crises in emerging markets: how early were the ‘early’ warning signals?," Applied Economics, Taylor & Francis Journals, vol. 45(12), pages 1601-1623, April.

    More about this item

    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:sae:intare:v:5:y:2002:i:1:p:27-49. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.hufs.ac.kr/user/hufsenglish/re_1.jsp .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.