TY  - JOUR
AU  - Mishkin,Frederic S.
TI  - Lessons from the Asian Crisis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7102
PY  - 2000
Y2  - August 2000
UR  - http://www.nber.org/papers/w7102
L1  - http://www.nber.org/papers/w7102.pdf
N1  - Author contact info:
Frederic S. Mishkin
Columbia University
Graduate School of Business
Uris Hall 817
3022 Broadway
New York, NY 10027
Tel: 212-854-3488
Fax: 212/662-8474
E-Mail: fsm3@columbia.edu
AB  - 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.
ER  -