Bubbles, Monetary Management and the Asian Currency Crisis

We propose a life cycle of bubbles (from a quiescent stable state to a bubble to its collapse) where the role of monetary management is crucial. We claim that the policy of liberalizing short-term capital and private foreign borrowing (which was in effect a non-inﬂationary expansionary monetary policy with stable (pegged) exchange rates) combined to precipitate and deepen the Asean bubbles and create unsustainable short- and unhedged forex exposures.

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Year of publication:	1998
Authors:	Fabella, Raul V.
Published in:	Philippine Review of Economics. - School of Economics. - Vol. 35.1998, 2, p. 208-221
Publisher:	School of Economics

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011004517