Financial Liberalization and the Asian Crisis

by Edited by Ha-Joon Chang, Gabriel Palma and D. Hugh Whittaker

• ISBN13: 9780333921586
• ISBN10: 0333921585
• Format: Trade Book
• Copyright: 2001-08-18
• Publisher: Palgrave Macmillan

Summary

The financial crisis that hit a number of economies of Asia in 1997 shocked the world. Financial Liberalization and the Asian Crisis rejects conventional explanations of the crisis as the outcome primarily of inefficient and corrupt economic systems in the countries concerned. It argues that the crisis was the result of premature and overly rapid financial liberalization in a world of increasing liquidity and volatility, and calls for a more cautious approach to financial liberalization, and reform of the international financial architecture.

Author Biography

Ha-Joon Chang is Assistant Director of Development Studies, Faculty of Economics and Politics, Gabriel Palma is Lecturer in Economics, Faculty of Economics and Politics, and D. Hugh Whittaker is Reader in Japanese and Comparative Economic Sociology and Assistant Director of ESRC Center for Business Research, all at the University of Cambridge.

Table of Contents

List of Figures and Tables	ix
List of Contributors	xi
Introduction	1	(7)
Ha-Joon Chang
Gabriel Palma
D. Hugh Whittaker
Economic Crisis in East Asia: The Clash of Capitalisms	8	(13)
Chalmers Johnson
Capital Market Crises: Liberalization, Fixed Exchange Rates and Market-driven Destabilization	21	(19)
Lance Taylor
Derivatives and Global Capital Flows: Applications to Asia	40	(23)
J. A. Kregel
From 'Miracle' to 'Cronyism': Explaining the Great Asian Slump	63	(19)
Robert Wade
Thailand's Crisis: Neo-Liberal Agenda and Local Reaction	82	(20)
Pasuk Phongpaichit
Chris Baker
Malaysian Debacle: Whose Fault?	102	(22)
Jomo K. S.
Indonesia: From Showcase to Basket Case	124	(16)
Jonathan Pincus
Rizal Ramli
Interpreting the Korean Crisis: Financial Liberalization, Industrial Policy and Corporate Governance	140	(16)
Ha-Joon Chang
Hong-Jae Park
Chul Gyue Yoo
Fashioning a New Korean Model out of the Crisis: The Rebuilding of Institutional Capabilities	156	(19)
John A. Mathews
Japan's Crisis: Evolution and Implications	175	(15)
D. Hugh Whittaker
Yoshitaka Kurosawa
Responses to the Crisis: Constraints to Rapid Trade Adjustment in East Asia's Electronics Industry	190	(25)
Dieter Ernst
Asian Crisis and the Future of the Japanese Model	215	(22)
Ronald Dore
The Economic Impact of the Asian Crisis on India and China	237	(17)
A. S. Bhalla
D. M. Nachane
Three-and-a-half Cycles of 'Mania, Panic, and [Asymmetric] Crash': East Asia and Latin America Compared	254	(33)
Gabriel Palma
Index	287