The East Asia Crisis – Fundamental Indicators and the Need for Bailout Intervention

The East Asia Crisis that began in 1997 was unique in its ability to cripple countries that had previously enjoyed years of unprecedented economic success. This paper provides a brief review of the East Asia Crisis and explores differences between countries that required bailouts and those that did not. The results show that the countries that required bailouts were characterized by greater current account deficits, higher levels of domestic credit to the private sector, lower export shares of GDP, and more volatile debt composition than those less affected. Meanwhile, the groups were similar in their export growth and inflation rates. These findings could inform policy measures aimed at preventing and managing future financial crises.

• Publication year

  2021

• Venue

  University of Michigan Undergraduate Research Journal

• Publication date

  2021-12-20

• Fields of study

  Not labeled

• Identifiers
  DOI 10.3998/umurj.1331
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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