The South Korean financial crisis
Competing Explanations and Policy Lessons for Financial Liberalization
Bibliographic Data
| ID | 4031786 |
|---|---|
| Authors | Panicos O Demetriades, Panicos Demetriades (0000-0002-4752-013X, London South Bank University), Bassam A Fattouh, Bassam Fattouh (0000-0003-2897-2912, London South Bank University) |
| Year | 1999 |
| Volume | 75 |
| Issue | 4 |
| Pages | 779-792 |
| Publication date | 1999-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Affairs (JOURNAL) |
| Journal identifiers | ISSN: 0020-5850 • E-ISSN: 1468-2346 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-2346.00108 |
| OpenAlex | W2034020621 |
| Language | EN |
| Citations received | 4 |
There are two types of explanations of the Asian financial crisis: the ‘fundamentalist’, which focuses on macroeconomic imbalances; and the ‘self-fulfilling’, which ascribes the crisis to beliefs. This article argues that while both have some merit in explaining the Korean crisis, neither fits the facts very well. The authors put forward a new explanation which emphasizes the role played by financial liberalization and the structural weaknesses in the banking system. They explain that the combination of these factors created conditions that made the Korean banking system vulnerable to the sentiments of foreign investors, simultaneously eroding the ability of the Korean central bank to act effectively as a lender of last resort. The authors examine how various policy mistakes aggravated the crisis and draw some conclusions that may be useful for other emerging market economies
Business · Economics · Financial crisis · Financial system · International economics · Liberalization · Macroeconomics · Market economy · Banking stability, regulation, efficiency · Finance · Global Financial Crisis and Policies
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,16 |
| Citation span | 2001 - 2006 (6) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |