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The Financial Crisis: A Watershed in Economic Thought about East Asia

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For the whole of East Asia, and for the world, the financial drama that came to international attention in the second quarter of 1997 has posed large questions about the operation of modern economies. While the expression ‘Asian financial crisis’ remains in the world’s headlines, in February 1998 it would be more accurate to confine the term ‘crisis’ to Indonesia, Korea and Thailand, although some economies look more vulnerable to further complications than others, Vietnam amongst them. This paper examines the origins of the crisis and the manner in which it unfolded through 1997. It discusses possible consequences of recent events for long-term growth and structural change and economic thought.
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Document Type: Research Article

Affiliations: The Australian National University

Publication date: May 1, 1998

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