Asian Financial Crisis

Crisis Response

SUBJECT: Obstacles to reforming the architecture of the international financial system.
SIGNIFICANCE: The outcome of attempts to redesign the international monetary architecture will depend on the course of the financial crisis itself.
ANALYSIS: The East Asian financial crisis has been transmitted to the rest of the world economy through two channels: Read the rest of this entry »

Financial Instability

SUBJECT: The links between financial and real instability in the world economy (Part 2 of 2: Financial risks in the advanced economies).
SIGNIFICANCE: The massive expansion of financial assets relative to real economic activity may have left the advanced economies more vulnerable to generalised disturbances in the international monetary system.
ANALYSIS: In the initial stages of the East Asian crisis, its effects were transmitted to the advanced economies mainly via changes in trade flows and commodity prices: Read the rest of this entry »