NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Lessons from the Asian Crisis

Frederic S. Mishkin

NBER Working Paper No. 7102 (Also Reprint No. r2278)
Issued in August 2000
NBER Program(s):   IFM   ME

This paper provides an asymmetric information analysis of the recent East Asian crisis. It then outlines several lessons from this crisis. First, there is a strong rationale for an international lender of last resort. Second, without appropriate conditionality for this lending, the moral hazard created by operation of an international lender of last resort can promote financial instability. Third, although capital flows did contribute to the crisis, they are a symptom rather than an underlying cause of the crisis, suggesting exchange controls are unlikely to be a useful strategy to avoid future crises. Fourth, pegged exchange-rate regimes are a dangerous strategy for emerging market countries and make financial crises more likely.

download in pdf format
   (177 K)

email paper

This paper is available as PDF (177 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7102

Published: Journal of International Money and Finance, Vol. 18, no. 4 (August 1999): 709-723. Published as "Lessons from the Tequila Crisis", Journal of Banking and Finance, Vol. 23, no. 10 (October 1999): 1521-1533.

Users who downloaded this paper also downloaded these:
Kaminsky, Reinhart, and Vegh w10061 The Unholy Trinity of Financial Contagion
Radelet and Sachs The Onset of the East Asian Financial Crisis
Corsetti, Pesenti, and Roubini w6783 Paper Tigers? A Model of the Asian Crisis
Corsetti, Pesenti, and Roubini w6834 What Caused the Asian Currency and Financial Crisis? Part II: The Policy Debate
Radelet and Sachs w6680 The Onset of the East Asian Financial Crisis
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us