Description
Book SynopsisFinancial crises are recurring phenomena that can cause significant economic and societal loss. This book is therefore vitally important as it analyzes why and how financial crises occur, the extent of their impact, and what can be done to prevent their recurrence or reduce the damage they cause. Comprising original and never-before-published papers by distinguished economists, this book offers insights about lessons that were or should have been learned from recent outbreaks of such crises in East Asia and elsewhere.
Recent Financial Crises also presents a set of econometric studies of issues such as labor market behavior, investment and productivity, and exchange rate adjustments. Although China did not have a crisis, its economic behavior was closely monitored in order to see if that had any effect on the crisis conditions. In this respect, the book contains an estimation of China's 'core' inflation rate, as well as its 'true' cost of living index, over a 20-year period spanning the Asian financial crisis. In general, collectively, the studies point to a need for ongoing structural reforms to minimize vulnerability to crises or soften their impact. The necessity for resorting to viable safety nets is also stressed.
Policymakers and central bankers will find this book of great value, as will scholars and researchers at many levels of academe, involved in financial, business, and international economics.
Table of ContentsContents: Introduction Lawrence R. Klein and Tayyeb Shabbir PART I: ANALYSIS OF CURRENCY CRISES 1. Asia Before and After the Financial Crisis of 1997–98: A Retrospective Essay Lawrence R. Klein and Tayyeb Shabbir 2. Indicators and Analysis of Vulnerability to Currency Crisis: Thailand Pranee Tinakorn PART II: CURES AND REFORMS 3. The Next Financial Crisis Barry Eichengreen 4. Capital Controls, Financial Crises and Cures: Simulations with an Econometric Model for Malaysia Lawrence R. Klein, Roberto S. Mariano and Süleyman Özmucur 5. The Case of the Missing Market: The Bond Market and Why it Matters for Financial Development Richard J. Herring and Nathporn Chatusripitak PART III: ANALYTICAL ISSUES PERTAINING TO THE RECENT CRISES 6. Investment, Growth and Productivity during the East Asian Financial Crisis F. Gerard Adams and Tayyeb Shabbir 7. What Really Happened to Thai Wage Rates During the East Asian Financial Crisis? Jere R. Behrman, Anil B. Deolalikar and Pranee Tinakorn 8. Exchange Rate or Wage Changes in International Adjustment? Japan and China versus the United States Ronald I. McKinnon 9. Adjustment to China’s CPI-Based Inflation to Account for ‘True’ Cost of Living, 1993–2004 Lawrence R. Klein, Huiqing Gao and Liping Tao 10. Estimating China’s Core Inflation Rate Deming Wu Index
