What lessons does the Mexican crisis hold for recovery in Asia?

• Published in: Finance & Development Vol. 35; no. 2; pp. 6 - 9
• Main Author: Ortiz, Guillermo
• Format: Journal Article Magazine Article Trade Publication Article
• Language: English
• Published: Washington, D.C International Monetary Fund 01.06.1998; International Monetary Fund and the International Bank for Reconstruction and Development
• Subjects: Analysis; ASIA; Banking industry; Banks; Capital flow; Capital market; Capital movement; Comparative analysis; Currency; Currency devaluation; Current account; Developing countries; Economic aspects; Economic development; Economic growth; Economic impact; ECONOMIC POLICY; Emerging markets; Exchange rates; External debt; Financial crisis; Floating exchange rates; Foreign exchange markets; Foreign exchange rates; GDP; Globalization; Gross Domestic Product; Interest rates; Internal controls; International economic relations; Investments; Macroeconomics; MEXICO; Monetary policy; North American Free Trade Agreement; Private sector; Privatization; Regulation of financial institutions; Risk assessment; Stock market crashes; Supervision; Sustainability; Asia; Mexico
• ISSN: 0145-1707; 0015-1947; 1564-5142

THE SIMILARITIES BETWEEN THE 1994-95 MEXICAN PESO CRISIS AND THE 1997-98 ASIAN FINANCIAL CRISIS ARE STRIKING. PARTICULARLY NOTEWORTHY ARE THE PROBLEMS OF ECONOMIC POLICY MANAGEMENT CONFRONTING EMERGING NATIONS IN A WORLD OF HIGHLY-MOBILE CAPITAL. A COMPARISON OF THE TWO CRISES CAN HELP SCHOLARS TO BETTER UNDERSTAND THEIR CAUSES AND CAN YIELD SOME USEFUL LESSONS ABOUT THE VULNERABILITY OF EMERGING ECONOMIES TO SUDDEN CAPITAL OUTFLOWS.