Weathering the Asian Crisis: The Role of China
During the Asian crisis, China’s healthy reserves and low debt made possible the avoidance of a ‘country run’. Nonetheless, it did experience a substantial increase in private savings, an associated increase in capital outflow and a slowdown in economic growth. This paper employs a global general equilibrium analysis to examine the relative contributions of external and internal shocks to the Chinese economy during the crisis. The change in private savings, driven by ongoing domestic reforms, appears to have been the dominant force. By coincidence of timing, this shock was also a significant contributor to the international effects of the crisis. Nonetheless, the maintenance since before the crisis of near fixed parity with the US dollar made the combined internal and external shocks more contractionary in China than would have been the case had it been possible to retain a flexible exchange rate regime.
|Date of creation:||Oct 2000|
|Contact details of provider:|| Postal: Canberra ACT 2601|
Phone: (61-2) 6249 3780
Fax: (61-2) 6249 3941
Web page: https://crawford.anu.edu.au/research_units/ajrc/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:csg:ajrcau:308. 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: (Akira Kinefuchi)
If references are entirely missing, you can add them using this form.