The Impact of the Financial Crisis on Emerging Asia
... “decoupling” are being revived along with an accent on Asia’s superior economic “fundamentals.” China’s economic growth accelerated to 7.8 percent in the second quarter (2009) and its (consensus) growth forecast for 2009 as a whole has been raised on the order of 100 to 200 basis points.5 So, too, w ...
... “decoupling” are being revived along with an accent on Asia’s superior economic “fundamentals.” China’s economic growth accelerated to 7.8 percent in the second quarter (2009) and its (consensus) growth forecast for 2009 as a whole has been raised on the order of 100 to 200 basis points.5 So, too, w ...
DEVELOPMENT ASIA-PACIFIC JOURNAL Vol. 10, No. 1, June ...
... Within the overall theme of macroeconomic management the role of fiscal policy stands alone. As countries grapple with the challenges of devising equitable and efficient taxation systems they have to cater also to the need to balance the pressures generated by the level of centralization in the reve ...
... Within the overall theme of macroeconomic management the role of fiscal policy stands alone. As countries grapple with the challenges of devising equitable and efficient taxation systems they have to cater also to the need to balance the pressures generated by the level of centralization in the reve ...
RMB as an Anchor Currency in ASEAN, China, Japan
... RMB as a regional anchor in the ASEAN+3 region 3, given the close economic ties between China and the members and the evidence of increasing exchange rate co-movements between the RMB and the other major currencies in this region. We are also interested in the major determinants that have led to th ...
... RMB as a regional anchor in the ASEAN+3 region 3, given the close economic ties between China and the members and the evidence of increasing exchange rate co-movements between the RMB and the other major currencies in this region. We are also interested in the major determinants that have led to th ...
Market-specific and Currency-specific Risk during the
... the Tokyo Interbank Offered Rate (TIBOR) was synchronized with the London Interbank Offered Rate (LIBOR) denominated in the United States (US) dollar and the Japanese yen. LIBOR, the world's most widely used benchmark for short-term interest rates, is calculated for 10 currencies including the US do ...
... the Tokyo Interbank Offered Rate (TIBOR) was synchronized with the London Interbank Offered Rate (LIBOR) denominated in the United States (US) dollar and the Japanese yen. LIBOR, the world's most widely used benchmark for short-term interest rates, is calculated for 10 currencies including the US do ...
Market-specific and Currency-specific Risk During the Global
... Offered Rate (TIBOR) was synchronized with the London Interbank Offered Rate (LIBOR) denominated in the US dollar and the Japanese yen. Regardless of the currency denomination, TIBOR was highly synchronized with LIBOR in tranquil periods. However, the interbank rates showed substantial deviations in ...
... Offered Rate (TIBOR) was synchronized with the London Interbank Offered Rate (LIBOR) denominated in the US dollar and the Japanese yen. Regardless of the currency denomination, TIBOR was highly synchronized with LIBOR in tranquil periods. However, the interbank rates showed substantial deviations in ...
Monetary Policy Spillovers and the Trilemma in the New Normal
... implementation in the preceding years, it is clear that – at a minimum – policymakers in emerging market economies perceive an increasing vulnerability to the whims of the global financial system. The idea that the monetary policies of financial center countries have large spillover effects on the s ...
... implementation in the preceding years, it is clear that – at a minimum – policymakers in emerging market economies perceive an increasing vulnerability to the whims of the global financial system. The idea that the monetary policies of financial center countries have large spillover effects on the s ...
1 2 economic and social survey of ...
... The V-shaped recovery from the depths of the global financial crisis proved to be short-lived as the world economy entered the second stage of crisis in 2011 The V-shaped recovery from the depths of the 2008-2009 global financial crisis in 2010 proved to be short-lived as the world economy entered t ...
... The V-shaped recovery from the depths of the global financial crisis proved to be short-lived as the world economy entered the second stage of crisis in 2011 The V-shaped recovery from the depths of the 2008-2009 global financial crisis in 2010 proved to be short-lived as the world economy entered t ...
Depreciation of the Indian Currency: Implications for the
... 800.51 points. On 10th October, the BSE 30-share Sensex ended down 800.51 points or 7.07% to 10,527.86. The index plunged 1,088.50 points at the day's low of 10,239.76 at the onset of the trading session, its lowest level since 24 July 2006. The Sensex fell 424.33 points at day’s high of 10,904.13, ...
... 800.51 points. On 10th October, the BSE 30-share Sensex ended down 800.51 points or 7.07% to 10,527.86. The index plunged 1,088.50 points at the day's low of 10,239.76 at the onset of the trading session, its lowest level since 24 July 2006. The Sensex fell 424.33 points at day’s high of 10,904.13, ...
Assessing the impact of the current financial and economic crisis... global FDI flows
... border mergers and acquisitions (M&As) and FDI flows, as compared to the same period of the previous year (UNCTAD, 2008b). A brutal shock in October 2008. During the first eight months of 2008, the world financial system went through a period of relative relief, leading to some optimism regarding t ...
... border mergers and acquisitions (M&As) and FDI flows, as compared to the same period of the previous year (UNCTAD, 2008b). A brutal shock in October 2008. During the first eight months of 2008, the world financial system went through a period of relative relief, leading to some optimism regarding t ...
The Impact of the Financial Crisis on Emerging Asia
... growth in the emerging and developing countries went from 6.6 percent in April 2008 to just 1.5 percent this July. In October 2008, the emerging‐market bond spread hit 850 points – almost six times its pre‐crisis level in June 2007. Industrial production and exports in emerging economies have ...
... growth in the emerging and developing countries went from 6.6 percent in April 2008 to just 1.5 percent this July. In October 2008, the emerging‐market bond spread hit 850 points – almost six times its pre‐crisis level in June 2007. Industrial production and exports in emerging economies have ...
Managing Financial Crisis in an Interconnected World
... increased trade flows, these flows have also been driven by the emergence of global supply chains. Over the years, businesses have divided their production into specialized segments which are outsourced to other local or international companies or by relocating part of their supply chain to other co ...
... increased trade flows, these flows have also been driven by the emergence of global supply chains. Over the years, businesses have divided their production into specialized segments which are outsourced to other local or international companies or by relocating part of their supply chain to other co ...
research paper series Research Paper 2006/19
... conditions made matters worse not better post crisis. Aghion, Bacchetta and Banerjee (2001, 2004) argue that when credit supply responds adversely to increasing nominal interest rates it is better to loosen monetary policy after a crisis. We suggest that for domestically-focused firms tightening mon ...
... conditions made matters worse not better post crisis. Aghion, Bacchetta and Banerjee (2001, 2004) argue that when credit supply responds adversely to increasing nominal interest rates it is better to loosen monetary policy after a crisis. We suggest that for domestically-focused firms tightening mon ...
... The Economic and Social Survey of Asia and the Pacific Year-end Update 2011 analyses challenges for our region since the release of the Survey 2011 in April and provides recommendations on appropriate responses for policy-makers in the region. The principal message of the Update is the need to under ...
Currency Trader
... and ING –– are going to offer derivatives that will help Chinese companies minimize fluctuations in currencies. The firms are able to offer the products thanks to a loosening of financial rules by the Chinese Government. The derivatives will allow Chinese businesses to hedge against swings in the pr ...
... and ING –– are going to offer derivatives that will help Chinese companies minimize fluctuations in currencies. The firms are able to offer the products thanks to a loosening of financial rules by the Chinese Government. The derivatives will allow Chinese businesses to hedge against swings in the pr ...
Clamoring for Greenbacks: Explaining the
... Third, the current international monetary system does not represent well the rise of China and other major developing countries as economic powers, all of which are highly frustrated with the current underrepresentation in international economic organizations such as the World Bank and the Internati ...
... Third, the current international monetary system does not represent well the rise of China and other major developing countries as economic powers, all of which are highly frustrated with the current underrepresentation in international economic organizations such as the World Bank and the Internati ...
The Flight from Maturity*
... Moody’s (2003), Nayar and Rozeff (1994)). If CP issuers’ ratings deteriorate then there is “orderly exit.” When a firm’s credit quality drops, perhaps as indicated by its rating, it cannot issue new CP because investors will not buy it. The firm may instead draw on its bank line to pay off its matur ...
... Moody’s (2003), Nayar and Rozeff (1994)). If CP issuers’ ratings deteriorate then there is “orderly exit.” When a firm’s credit quality drops, perhaps as indicated by its rating, it cannot issue new CP because investors will not buy it. The firm may instead draw on its bank line to pay off its matur ...
The Euro`s Challenge to the Dollar
... The question arises: If any of the N currencies can be the vehicle currency, how does any one currency get selected? In the international arena, there is no government to decree what should be international money (as in the domestic context). Instead, a myriad of private traders and market participa ...
... The question arises: If any of the N currencies can be the vehicle currency, how does any one currency get selected? In the international arena, there is no government to decree what should be international money (as in the domestic context). Instead, a myriad of private traders and market participa ...
Sources of Corporate Financing and Economic Crisis in
... capital market for their financing after the crisis. The paper also suggests that profitable small firms are gaining easier access to credit by financial institutions after the crisis. There has been a shift in the allocation of bank credit from large firms to small firms. Is this shift due to lende ...
... capital market for their financing after the crisis. The paper also suggests that profitable small firms are gaining easier access to credit by financial institutions after the crisis. There has been a shift in the allocation of bank credit from large firms to small firms. Is this shift due to lende ...
Regional Economic Outlook: Asia and Pacific
... has been delayed or limited in several countries. In addition, exchange rate movements are noticeably affecting inflation in some countries, with appreciation in China dampening inflation and depreciation in Brazil, Russia, South Africa, and Turkey amplifying it. Global factors, including commodity ...
... has been delayed or limited in several countries. In addition, exchange rate movements are noticeably affecting inflation in some countries, with appreciation in China dampening inflation and depreciation in Brazil, Russia, South Africa, and Turkey amplifying it. Global factors, including commodity ...
Economics Working Paper Weathering the financial storm: The
... greater exchange rate flexibility coincided with a smaller and shorter contraction, but at the same time increased the risk of a banking and currency crisis. We also find that countries with exchange rate pegs outside the European Monetary Union (EMU) were hit particularly hard, while inflation targ ...
... greater exchange rate flexibility coincided with a smaller and shorter contraction, but at the same time increased the risk of a banking and currency crisis. We also find that countries with exchange rate pegs outside the European Monetary Union (EMU) were hit particularly hard, while inflation targ ...
Documentation - APEC SME Crisis Management Center
... It is more difficult for them to get finance, especially from risk averse lenders (eg banks) who might actually have the funds, but are not as effective at mobilising them; even though there are entrepreneurial opportunities arising from restructuring and bankruptcy/exits, a generation of growth ori ...
... It is more difficult for them to get finance, especially from risk averse lenders (eg banks) who might actually have the funds, but are not as effective at mobilising them; even though there are entrepreneurial opportunities arising from restructuring and bankruptcy/exits, a generation of growth ori ...
... brought a number of countries to the verge of default and dramatically fuelled the crisis: – Developing countries should not be subject to a “crisis rating” by the same financial markets which have created their trouble. Multilateral or even global exchange rate arrangements are urgently needed to m ...
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... which some financial assets suddenly lose their nominal value. In general, many financial crises were associated with panics. Moreover, stock market crashes and the bursting of other financial bubbles (e.g. related to the real estate or IT sector) or galloping inflation have also been characterized ...
... which some financial assets suddenly lose their nominal value. In general, many financial crises were associated with panics. Moreover, stock market crashes and the bursting of other financial bubbles (e.g. related to the real estate or IT sector) or galloping inflation have also been characterized ...
Managing Capital Flows in Asia: An Overview of Key Issues
... global financial and economic crisis, capital flows to emerging countries surged again. There have been similar episodes in the past 3 decades, including one that culminated in the 1997–1998 East Asian financial crisis (AFC). Meanwhile, the GFC was followed by an unprecedented easing of monetary pol ...
... global financial and economic crisis, capital flows to emerging countries surged again. There have been similar episodes in the past 3 decades, including one that culminated in the 1997–1998 East Asian financial crisis (AFC). Meanwhile, the GFC was followed by an unprecedented easing of monetary pol ...
Government Policy Responses to Financial Crises
... Reinhart and Rogoff 2009). As financial crises have become increasingly frequent and damaging, debate has grown on the origins, management, and prevention of financial crises. Nonetheless, we still lack a systematic understanding of how governments’ macroeconomic policies are determined in the cours ...
... Reinhart and Rogoff 2009). As financial crises have become increasingly frequent and damaging, debate has grown on the origins, management, and prevention of financial crises. Nonetheless, we still lack a systematic understanding of how governments’ macroeconomic policies are determined in the cours ...
1997 Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.The crisis started in Thailand (well known in Thailand as the Tom Yum Goong crisis; Thai: วิกฤตต้มยำกุ้ง) with the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its fixed exchange rate, cutting its peg to the U.S. dollar, after exhaustive efforts to support it in the face of a severe financial over-extension that was in part real estate driven. At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt.Indonesia, South Korea and Thailand were the countries most affected by the crisis. Hong Kong, Laos, Malaysia and the Philippines were also hurt by the slump. Brunei, China, Singapore, Taiwan and Vietnam were less affected, although all suffered from a loss of demand and confidence throughout the region.Foreign debt-to-GDP ratios rose from 100% to 167% in the four large Association of Southeast Asian Nations (ASEAN) economies in 1993–96, then shot up beyond 180% during the worst of the crisis. In South Korea, the ratios rose from 13 to 21% and then as high as 40%, while the other northern newly industrialized countries fared much better. Only in Thailand and South Korea did debt service-to-exports ratios rise.Although most of the governments of Asia had seemingly sound fiscal policies, the International Monetary Fund (IMF) stepped in to initiate a $40 billion program to stabilize the currencies of South Korea, Thailand, and Indonesia, economies particularly hard hit by the crisis. The efforts to stem a global economic crisis did little to stabilize the domestic situation in Indonesia, however. After 30 years in power, President Suharto was forced to step down on 21 May 1998 in the wake of widespread rioting that followed sharp price increases caused by a drastic devaluation of the rupiah. The effects of the crisis lingered through 1998. In 1998 the Philippines growth dropped to virtually zero. Only Singapore and Taiwan proved relatively insulated from the shock, but both suffered serious hits in passing, the former more so due to its size and geographical location between Malaysia and Indonesia. By 1999, however, analysts saw signs that the economies of Asia were beginning to recover. After the 1997 Asian Financial Crisis, economies in the region are working toward financial stability on financial supervision.Until 1999, Asia attracted almost half of the total capital inflow into developing countries. The economies of Southeast Asia in particular maintained high interest rates attractive to foreign investors looking for a high rate of return. As a result, the region's economies received a large inflow of money and experienced a dramatic run-up in asset prices. At the same time, the regional economies of Thailand, Malaysia, Indonesia, Singapore, and South Korea experienced high growth rates, 8–12% GDP, in the late 1980s and early 1993. This achievement was widely acclaimed by financial institutions including IMF and World Bank, and was known as part of the ""Asian economic miracle"".