Asian Financial Crisis

The Japanese Crisis of 1990

In 1985-1987 the Japanese authorities have organized massed investing money into the economy. It was done by preferential crediting of commercial banks. And so, the discount rate of Bank of Japan those years was lowered from 5 % to 2,5 %.

Banks amicably rushed to borrow from the state. Naturally, the bankers were unobtrusively hinted that the received funds are best to lend to the construction companies and farmers who had very powerful lobbyists in the ruling Japanese political Liberal Democratic party. As a result, the construction sector got a fantastic boom. Read the rest of this entry »

The Asian Economic Crisis caught most by surprise and raised new questions about the role the media plays in information dissemination. Some question whether the over-inflation of “bubble economies” resulted naturally from exaggerated reports of the region’s economic prowess. Others ask whether the tone and substance of reporting aggravated perceptions of the Crisis as it developed. This panel will explore the role of the media in the period leading up to the economic crisis and question the neutrality of the media in a time of great volatility in the region. Read the rest of this entry »

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 »