Political Economy of the East Asian Crisis and its Aftermath

The East Asian crisis has sparked debate regarding the future of emerging markets and the globalization of world capital markets. This study, with contributions by leading economists and political scientists, provides an assessment of the causes and consequences of the crisis and the policy lessons drawn from it. In contrast to much of the existing literature, the volume presents the view that the crisis and its aftermath were not simply the result of purely economic and financial phenomena but also the reflection of some fundamental institutional, historical and political forces. The collection begins with a comparative and historical analysis of the crisis, placing it in the context of other financial and debt crises. This is followed by a discussion of the domestic political and economic factors behind the events, delineating the differences and similarities among affected countries. The contributors also examine how global political forces influenced the unfolding crisis in various countries. Using data, experts present the economic situation in East Asia, the contagion effects in the rest of the world, and the role played by international institutions such as the IMF. Finally, the volume provides a roundtable debate on the policy alternatives confronting emerging markets and the world monetary system in the aftermath of the crisis.