The Korean Currency Crisis

Project Director, Jeffrey Frankel
(Advisory Board: Martin Feldstein, Paul Krugman and Jeffrey Sachs)
Jeffrey Frankel, Jong-Wha Lee and Yung Chul Park, Organizers

(Panelists in each session are to lead off with 5 minutes of remarks each)

TUESDAY, FEBRUARY 1:

8:30 AM Continental Breakfast

9:00 AM Opening Remarks

9:15 AM Session 1: Build-up to the Crisis in 1997:

Chair: MARTIN FELDSTEIN, Harvard University and NBER

Panelists: BOHN YOUNG KOO, Korean Center for International Finance NOURIEL ROUBINI, U.S. Department of Treasury and NBER

JEFFREY SHAFER, Salomon, Smith, Barney

WANDA TSENG, International Monetary Fund

What caused the crisis?

Review of major events at critical junctures.

How do we evaluate the pre-crisis policies in retrospect?

10:45 AM Break

11:00 AM Session 2: Crisis and Macroeconomic Adjustments:

Chair: YUNG CHUL PARK, Korea University

Panelists: KANG-NAM LEE, Bank of Korea

DAVID LIPTON, Moore Capital Strategy Group

MICHAEL MUSSA, International Monetary Fund and NBER

DAVID PFLUG, Chase Manhattan

Resolution of creditor panic: How did the late-December program in 1997 differ from the December 4 program?

Role of the initial IMF programs.

Monetary and fiscal policies: Would some combination of devaluation and expansion have avoided the recession?

12:30 PM LUNCH, University Suites B & C

1:45 PM Session 3: Restructuring and Economic Recovery:

Chair: JONG-WHA LEE, Harvard University

Panelists: LAEL BRAINARD, National Economic Council and NBER

AJAI CHOPRA, International Monetary Fund

KAP-SOO OH, Financial Supervisory Service

ZIA QURESHI, The World Bank

Progress of reforms in financial and corporate sectors.

Was the recovery unexpectedly rapid, and if so why?

3:15 PM Break

3:30 PM Session 4: Lessons and Prospects for the Future:

Chair: JEFFREY FRANKEL, Harvard University and NBER

Panelists: MARTIN FELDSTEIN, Harvard University and NBER

PAUL KRUGMAN, MIT and NBER

JOSEPH STIGLITZ, The World Bank and NBER

RAK-YONG UHM, Ministry of Finance and Economy

What problems remain? Does the end of crisis mean the end of reform?

Recent policy developments.

Crisis prevention and management mechanism.

5:00 PM Adjourn

6:00 PM RECEPTION AND DINNER

Skyline Suites A & B, Royal Sonesta Hotel

1/28/00

WOOCHAN KIM, Harvard University
SHANG-JIN WEI, Harvard University and NBER
Foregin Portfolio Investors Before and During a Crisis

JEFFREY FRANKEL, Harvard University and NBER
Ten Lessons Learned from the Korean Crisis Graphs

JONG-WHA LEE, Harvard University
CHANGYONG RHEE, Seoul National University
Macroeconomic Impacts of the Korean Financial Crisis:
Comparison with the Cross-Country Patterns

YUNG CHUL PARK, Korea University
CHI-YOUNG SONG, Kookmin University
Financial Contagion in the East Asian Crisis With Special Reference to the Republic of Korea

YUNG CHUL PARK, Korea University
East Asian Dilemma: Restructuring Out or Growing Out?

ROBERT DEKLE, CHENG HSIAO and SIYAN WANG, University of Southern California
Do High Interest Rates Appreciate Exchange Rates During Crisis

MICHAEL DOOLEY, UC, Santa Cruz and NBER
INSEOK SHIN, Korean Development Institute
Private Inflows When Crises Are Anticipated: A Case Study of Korea

IN JUNE KIM and JUNG SEOK WOO, Seoul National University
Covered Interst Arbitrage and the Currency Crisis in Korea

STEVEN RADELET, U.S. Department of the Treasury
JEFFREY SACHS, Harvard University and NBER
What Have We Learned, So Far, From the Asian Financial Crisis?

JOON-HO HAHM, Korea Development Institute
FREDERIC MISHKIN, Columbia University and NBER
Causes of the Korean Financial Crisis: Lessons for Policy

YUNG CHUL PARK and INNWON PARK, Korea University
Who Destabilized the Korean Stock Market?

EDUARDO BORENSZTEIN, International Monetary Fund
JONG-WHA LEE, Harvard University
Financial Crisis and Credit Crunch in Korea: Evidence from Firm-Level Data

TIMOTHY LANE, ATISH GHOSH, JAVIER HAMANN, STEVEN PHILIPS, MARIANNE SCHULTZE-GHATTAS and TSIDI TSIKATA, International Monetary Fund
IMF-Supported Programs in Indonesia, Korea and Thailand

TOMAS BALINO and ANGEL UBIDE, International Monetary Fund
The Korean Financial Crisis of 1997- A Strategy of Financial Sector Reform

TAIMIR BAIG and ILAN GOLDFAJN, International Monetary Fund
Financial Market Contagion in the Asian Crisis

THE WORLD BANK
Republic of Korea: Establishing a New Foundation for Sustained Growth