ABOUT THE BOOK
world economy is now in difficult straits as a result of the financial
turmoil sparked by the subprime crisis in the
This paper contends that the current difficulties are linked to prior financial excesses and regulatory shortcomings which led to a buildup of vulnerabilities in financial and asset markets. The extent to which the Asian countries can decouple their growth from this ongoing turmoil depends on their prevailing domestic economic conditions and their policy response to possible shocks from the crisis.
In this respect, fragilities and imbalances exist in many major Asian economies, not least in the form of credit, asset and investment bubbles which were allowed to expand in recent years as foreign capital poured in. Nonetheless, in general, the author maintains, countries in the region do have the policymaking capacity to deal with any adverse trade and financial impacts of the crisis. Beyond the macroeconomic policy response to the present conditions, however, lies an urgent need for regulatory measures which will reduce the systemic instability generated by financial markets and capital flows in the first place.
ABOUT THE AUTHOR
YILMAZ AKYüZ is a former Director of the Division on Globalization
and Development Strategies at the United Nations Conference on Trade
and Development (UNCTAD) in
2. THE ROLE OF FINANCE IN THE RECENT
3. EXPANSION AND CRISIS IN THE UNITED STATES
a. The subprime boom and bust
b. The policy response and prospects
FLOWS AND VULNERABILITY IN
a. Lessons from the 1997 crisis
b. Capital flows
c. Credit, asset and investment bubbles
d. Current account balances, exchange rates and reserves
e. Capital account measures
SHOCKS AND POLICY OPTIONS IN
a. Growth prospects: projections and beyond
b. Financial contagion and shocks
linkages and growth in
d. Policy challenges
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