The authors investigate how the thinness of foreign-exchange markets causes destabilization speculation, especially when exchange-rate flexibility is increased, as it has been in the countries involved in the Asian crisis. They analyze the impact of this market thinness on the dynamic capital...

In the 1990s international bond issues from developing countries surged dramatically, becoming one of the fastest-growing devices for financing external development. Their terms have improved as institutional investors have become more interested in emerging market securities and better economic...

Even though real exchange rate has an important impact on sustainable export and economic growth for small open economies, its impact on income distribution and transmission mechanism was never investigated. The paper shows that improved income distribution, through its impact on the price of...

How Korea's financial structure affects the volatility of Korea's real effective exchange rate, money market rate, government bond yields, and stock prices.Min and Park explore how Korea's financial structure affects the volatility of asset prices. Documented empirical evidence of the...

This study of recent instability in seven Asian countries-Hong Kong, Indonesia, the Republic of Korea, Malaysia, the Philippines, Singapore, and Thailand-finds that capital mobility increased in six of the countries. Capital market risk increased the most in Thailand. And except in Singapore,...

Macroeconomic variables matter and so does liquidity. External shocks (international interest rates) appear not to matter.In the 1990s international bond issues from developing countries surged dramatically, becoming one of the fastest-growing devices for financing external development. Their...

Raising interest rates and devaluing currencies - traditional measures to stem capital flight and stabilize capital inflows during a financial crisis - were unable to change institutional investors' (self-fulfilling) expectations and herding behavior in four countries studied (Indonesia, the...

In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. This paper presents experimental evidence on a new entrepreneurship track that provides business training and...