FINS5522 - Emerging Financial Markets Essay Assignment| Week 4 (11th August 2010) Essay Question: Why did the Asian Financial Crisis (AFC) take many by surprise? Explain the major contributing factors that caused the crisis (and their effects), and discuss the lessons that can be learned in relation to preventing and/or responding to future crises. The Asian Financial Crisis (AFC) of 1997 was a period of financial turmoil and volatility that spread across Asia. Prior to July 1997, most of
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ABSTRACT: Asian economies went through significant transformation during the 2000s. They became part of global supply chains, major global commodity consumers and large capital exporters, and were also deeply involved in regional co-operation initiatives. These factors contributed to global disinflation in manufactured goods prices, abundant global liquidity and strong growth in commodity-exporting economies including Australia. (maybe because of 1997-1998 Asian financial crisis) In the coming
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Dragging Down the Asian Economy?: A New Look at the Determinants of Growth * Drivers Behind the Scene: Determinants of Economy Growth in Asian Countries Excerpt * Researchers found that private and public investments, lower financial risk, higher FDI and flexible exchange rate regimes appears to support Asian countries' economy growth, while more open capital accounts marginally reduce growth facing financial crisis. Taglines/Pull Quotes: * “The majority of Asian countries have some
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Asian Crisis • What happened and when did it happen? Asian Crisis that hit pacific Asian in middle 1997, it liked a big earthquake suddenly hit Southern Asia. In Thailand, the July 2, 1997 when it currency had to devalue, the baht, about 20% against the US dollar, as a result of intense pressure in the foreign exchange market. Not only currency speculators but also many Thai residents were trying to sell the baht and buy the US dollar, causing and worsening capital flight out of the country,
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Regional Economic Integration In the past twenty years, the East Asian economies realized the freedom of foreign trade and direct investment (FDI) because of the influence of GATT/WTO and APEC and as a result, it further promotes the economic growth of East Asia. The mutual economic dependence of each countries has increased a lot and therefore, close economic cooperation among Asian countries is necessary for healthy economic development. Many countries try to deepen their
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increasing credit could lead to another Crisis in Asia We have seen since the global financial crisis that there has been a surge in capital from the developed world to the developing world. As returns rates are lower in the developed world due to expanding monetary policy, more opportunity for higher investment is overseas. This increase in liquidity to the emerging Asian market has several implications if not managed could have drastic consequences. As the Asian market is experiencing rapid domestic
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Preliminary Draft February 20, 2010 THE GLOBAL ECONOMIC CRISIS AND SOUTH ASIA By Dr. Akmal Hussain, Distinguished Professor, Beaconhouse National University INTRODUCTION What began as a financial crisis in 2008 rapidly metastasized into a global economic crisis that pushed the world economy into the deepest recession since the Great Depression of the 1930s. In this paper we will examine the origins and nature of this crisis in the context of the dynamics of world capitalism, indicate
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THE INTERNATIONAL MONETARY FUND AND EXCHANGE RATE CRISIS MANAGEMENT∗ CHONG-YAH LIM Albert Winsemius Chair Professor of Economics Director, Economic Growth Centre (EGC) School of Humanities and Social Sciences (HSS) Nanyang Technological University (NTU) S3-01B-38, Nanyang Avenue, Singapore 639798 acylim@ntu.edu.sg The article analyzes the limits of the IMF as a global multilateral economic agency to handle serious balance of payments disequilibria. Capital control and growth rates in developing
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Risk Management in the Asian Banking Sector “What is the best strategy for the implementation of Enterprise Risk Management in the banking sector of the highly expansive but volatile Asian economy?” I chose to do an in-depth study of this area of risk management because as I am Australian, it is extremely important for me to start to fully understand the workings of our closest economic partner and the future of our economy which is driven by the expansive growth that is rolling through Asia
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Financial markets development and bank risk: Experience from Thailand during 1990–2012 1. Introduction a) Origion of concept: The longitudinal study aims to understand the impact of the evolution of financial markets development bank behavior. The focus on Thailand during the period 1990–2012 b) Theoritical background: captures the events surroundingthe Asian financial crisis of 1997–19982and the global financial crisis of 2007–2009. c) Significance/ Importance: Several studies have highlighted
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