Various claims have been made about the causes of the Asian crisis and its spread. Here, we use data on the behaviour of capital flows during the crisis to test the strong forms of four such hypotheses, that portfolio investors and hedge funds played a dominant role in initiating and/or...

Since Japanese banks have been the major creditors in Asia, Japan has been a notable source of regional macroeconomic fluctuations. This study explores the patterns of Japanese bank claims in East Asian economies, focusing on the transmission effects of Japanese financial shock via international...

I analyze how U.S. financial shocks and the U.S. business cycle, as well as the business cycles of local economies, can help explain changes in international lending by U.S. banks. I find that during the financial crisis of 2007-8, U.S. financial shocks were transmitted to emerging market...

This paper investigates whether the adoption of a more floating exchange rate regime with inflation targeting has improved the vulnerability of the exchange rate, by looking at the Korean case. Using the NATREX model, I estimate the equilibrium real exchange rate of the Won and its misalignment....

This paper overviews and compares China's gradual economic liberalization with other transitional economies moving from planned economy to market economy such as Vietnam in Asia and Russia. China liberalized its economy more slowly than Vietnam and Russia. In the early stage of reform, China...