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3.7 Noble
3.7 Noble
Gregory W. Noble and John Ravenhill, Cause and Consequences of the Asian Financial
Crisis, in Gregory W. Noble and John Ravenhill, eds., The Asian Financial Crisis and the
Architecture of Global Finance, ed., Cambridge, 2000, pp. 1-35
Summary: The Asian financial crisis resulted from the sudden flight of large amounts of capital from Asian countries
that lacked adequate systems of prudential regulation, and whose foreign exchange rate proved disastrously brittle.
The crisis was unique in its unprecedented severity of corporate distress and banking sector problems, and its
quickness in recovery from the crisis. While technical improvements in the financial system were institutionalized,
the crisis did not bring fundamental structural revisions, in both political and economic arena. Doughty resistance
from entrenched ideologies and interests in the U.S, the U.K, and the IMF prevented the reforms and
rearrangements in the international financial system from happening.
The East Asian crisis---the severest jolt to the world economy since the Oil Shock in early 1980s.
Asian Crisis ---spread from Thailand to Indonesia, the Philippines, Malaysia and Korea.
Sequences---Export decline loss of investors confidence Currency devaluation due to lack of foreign
reserve IMF emergency fund requiring tight budget and monetary policy increase in non-performing loans
and damage in domestic industries
Drastic increase in international private capital inflow in the 90s was key to understand this crisis.
This is the organization I work for!!! (I did not have to include the Miyazawa Plan in this summary since this is too detailed
info, but I wanted!)