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Sources Of Asian Currency Crisis

Author

Listed:
  • 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

Suggested Citation

  • Muhd-Zulkhibri Abdul Majid, 2004. "Sources Of Asian Currency Crisis," International Finance 0405020, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpif:0405020
    Note: Type of Document - pdf; pages: 19
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    References listed on IDEAS

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    More about this item

    Keywords

    currency crisis; Asian; probit;

    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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