Chen, Zhaohui.
Financial Crisis and Credit Crunch as a Result of Inefficient Financial Intermediation-with Reference to the Asian Financial Crisis Zhaohui Chen. [electronic resource] / Zhaohui Chen. - Washington, D.C. : International Monetary Fund, 1998. - 1 online resource (24 p.) - IMF Working Papers; Working Paper ; No. 98/127 . - IMF Working Papers; Working Paper ; No. 98/127 .
This paper develops a model of private debt financing under inefficient financial intermediation. It suggests a mechanism that can generate the following sequence of events observed in the recent Asian crisis: A period of relatively low capital flow despite a steady improvement in economic fundamentals (capital inflow inertia), followed by a fast buildup of capital inflow, and ended with a large capital outflow and domestic credit crunch. Unlike other models requiring large movements in fundamentals or asset prices to explain a financial crisis, this model can exhibit large credit/capital flow swings with moderate changes in the economic and market environment.
1451935994 : 15.00 USD
1018-5941
10.5089/9781451935998.001 doi
Asian Crisis
Capital Flow
Capital Flows
Capital Inflow Inertia
Capital Inflow
Capital Outflow
Indonesia
Korea, Republic of
Malaysia
Philippines
Thailand
Financial Crisis and Credit Crunch as a Result of Inefficient Financial Intermediation-with Reference to the Asian Financial Crisis Zhaohui Chen. [electronic resource] / Zhaohui Chen. - Washington, D.C. : International Monetary Fund, 1998. - 1 online resource (24 p.) - IMF Working Papers; Working Paper ; No. 98/127 . - IMF Working Papers; Working Paper ; No. 98/127 .
This paper develops a model of private debt financing under inefficient financial intermediation. It suggests a mechanism that can generate the following sequence of events observed in the recent Asian crisis: A period of relatively low capital flow despite a steady improvement in economic fundamentals (capital inflow inertia), followed by a fast buildup of capital inflow, and ended with a large capital outflow and domestic credit crunch. Unlike other models requiring large movements in fundamentals or asset prices to explain a financial crisis, this model can exhibit large credit/capital flow swings with moderate changes in the economic and market environment.
1451935994 : 15.00 USD
1018-5941
10.5089/9781451935998.001 doi
Asian Crisis
Capital Flow
Capital Flows
Capital Inflow Inertia
Capital Inflow
Capital Outflow
Indonesia
Korea, Republic of
Malaysia
Philippines
Thailand