Asian and European Financial Crises Compared
The European and Asian financial crises are the two most recent major regional crises. This paper compares their origins and evolution. The origins of the two sets of crises were different in some respects, but broadly similar. The two sets of crises also shared similarities in their evolution, but here the differences were more significant. The European crisis countries received more external financial support, despite the fact that they involved more solvency issues while the Asian crises involved more liquidity issues. On balance, the reform programs in the European crises were less demanding and rigorous than in the Asian crises. Partly as a consequence, the negative impacts on the global economy have been larger. Author Edwin M. Truman draws three lessons from this analysis: First, history will repeat itself; there will be other external financial crises. Second, other countries have a stake in appropriate crisis management. Third, the International Monetary Fund (IMF) and other countries were mistaken in treating the European crises as individual country crises rather than as a crisis for the euro area as a whole that demanded policy conditionality on all members of the euro area.
|Date of creation:||Oct 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.piie.com
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barkbu, Bergljot & Eichengreen, Barry & Mody, Ashoka, 2012.
"Financial crises and the multilateral response: What the historical record shows,"
Journal of International Economics,
Elsevier, vol. 88(2), pages 422-435.
- Bergljot Barkbu & Barry Eichengreen & Ashoka Mody, 2011. "Financial Crises and the Multilateral Response: What the Historical Record Shows," NBER Chapters, in: Global Financial Crisis National Bureau of Economic Research, Inc.
- Shinji Takagi, 2010. "Applying the Lessons of Asia: The IMFâ€™s Crisis Management Strategy in 2008," Working Papers id:3006, eSocialSciences.
- Noland, Marcus, 2000. "The Philippines in the Asian Financial Crisis: How the Sick Man Avoided Pneumonia," MPRA Paper 55665, University Library of Munich, Germany.
- Adam Posen & Nicolas VÃ©ron, 2009.
"A solution for Europe's banking problem,"
- Takagi, Shinji, 2010. "Applying the Lessons of Asia: The IMF's Crisis Management Strategy in 2008," ADBI Working Papers 206, Asian Development Bank Institute.
- Jason Furman & Joseph E. Stiglitz, 1998. "Economic Crises: Evidence and Insights from East Asia," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 1-136.
- Lawrence H. Summers, 2000. "International Financial Crises: Causes, Prevention, and Cures," American Economic Review, American Economic Association, vol. 90(2), pages 1-16, May.
- Jean Pisani-Ferry & AndrÃ© Sapir & Guntram B. Wolff, .
"An evaluation of IMF surveillance of the euro area,"
Bruegel, number 629.
- André Sapir & Jean Pisani-Ferry & Guntram Wolff, 2011. "An Evaluation of IMF Surveillance of the Euro Area," ULB Institutional Repository 2013/174277, ULB -- Universite Libre de Bruxelles.
- Marcus Noland, 2000. "Avoiding the Apocalypse: The Future of the Two Koreas," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 94, March.
- C. Fred Bergsten & Jacob Funk Kirkegaard, 2012. "The Coming Resolution of the European Crisis," Policy Briefs PB12-1, Peterson Institute for International Economics.
- Nicolas VÃ©ron & Guntram B. Wolff, 2013.
"From supervision to resolution: next steps on the road to European banking union,"
- Nicolas Veron & Guntram B. Wolff, 2013. "From Supervision to Resolution: Next Steps on the Road to European Banking Union," Policy Briefs PB13-5, Peterson Institute for International Economics.
- Barth, James R. & Caprio, Gerard Jr. & Levine, Ross, 2012. "Guardians of Finance: Making Regulators Work for Us," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262017393, June.
- Krugman, Paul, 1979. "A Model of Balance-of-Payments Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 11(3), pages 311-25, August.
- Zsolt Darvas & Jean Pisani-Ferry & Guntram B. Wolff, 2013. "Europe's growth problem (and what to do about it)," Policy Briefs 776, Bruegel.
- C. Fred Bergsten & Jacob Funk Kirkegaard, 2012. "The Coming Resolution of the European Crisis: An Update," Policy Briefs PB12-18, Peterson Institute for International Economics.
- Marcus Noland, 1996. "Restructuring Korea's Financial Sector for Greater Competitiveness," Working Paper Series WP96-14, Peterson Institute for International Economics.
- C. Randall Henning, 2011. "Coordinating Regional and Multilateral Financial Institutions," Working Paper Series WP11-9, Peterson Institute for International Economics.
When requesting a correction, please mention this item's handle: RePEc:iie:wpaper:wp13-9. 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: (Peterson Institute webmaster)
If references are entirely missing, you can add them using this form.