By building up the amount of debt denominated in yen, Japan also hoped to internationalise its currency. The Japanese initiative was even supported by the IMF. As a result, long-term US interest rates were pushed up. More on This Topic Book. When Summers found out that the naughty Asians had sneaked away to conspire on their own, he immediately left his own meeting and went into their room, sat down by their table and said "Now, where were we? Going It Alone in the Asia-Pacific: From April to May the yen declined nearly 40 per cent.
Reviving the "Asian Monetary Fund"
The Japanese yen fell to as mass selling began, but Japan was the world's largest holder of currency reserves at the time, so it was easily defended, and quickly bounced back. Closer monetary and financial cooperation in Asia is making progress, if slowly. The crisis has been intensively analyzed by economists for its breadth, speed, and dynamism; it affected dozens of countries, had a direct impact on the livelihood of millions, happened within the course of a mere few months, and at each stage of the crisis leading economists, in particular the international institutions, seemed a step behind. The September 11 attacks contributed to major shockwave in Developed and Developing economies Stock market downturn of . This proposed fund was to be a multilateral revolving facility, involving other Asian countries, notably China, Hong Kong, Taiwan and Singapore as well as Japan. Establishment of an Asian Monetary Fund — an idea born in the aftermath of the Asian Crisis — made concrete progress with establishment of the reserve-swapping arrangement known as the Chiang Mai Initiative.
Asian financial crisis - Wikipedia
The September 11 attacks contributed to major shockwave in Developed and Developing economies Stock market downturn of . Economy of Hong Kong. Overall, the country's gross domestic product plunged 6. In particular, the Asian financial crisis convinced the Chinese government of the need to resolve the issues of its enormous financial weaknesses, such as having too many non-performing loans within its banking system, and relying heavily on trade with the United States. The real obstacle in the way of the creation of an AMF is not a question of arguments, pro or con, but of the difficulties involved in mounting collective action in the international domain.
Chiang Mai Initiative Multilateralisation
Description: Rather, the debate has shifted to trying to understand the nature of regional cooperation and its political and economic causes and consequences. The Thai baht continued to appreciate to 29 Baht to the U. The crisis also led to the end of the Indonesian occupation of East Timor. The value of an institutional economics perspective.