Rethinking the Asian Financial Crisis Through the Capital Account Crisis Paradigm

2001 ◽  
Vol 2 (1) ◽  
pp. 111-122
Author(s):  
Yeomin Yoon ◽  
Robert McGee
Keyword(s):  
Financial Crisis ◽  
Preventive Measures ◽  
Political Process ◽  
Asian Financial Crisis ◽  
The Political ◽  
Capital Account ◽  
Economic Policies ◽  
Growth Path ◽  
Potential Growth ◽  
The Great Depression

In this paper the authors rethink the Asian financial crisis that occurred in 1997-1998 through the relatively new capital account crisis paradigm. They argue that this paradigm provides a much more appropriate perspective to frame the questions regarding causes, cures, and preventive measures raised by the Asian crisis, and that it provides a more persuasive explanation for the greater-than-expected severity of the crisis than that which would have been expected from an analysis based on the traditional current-account mode of thinking. he authors conclude that, just as the Great Depression was a tragic testament to the failure of the political process to yield economic policies appropriate for sustaining the economy on a potential growth path, the Asian financial crisis may also be so construed.

The Neodevelopmentalist Front and Mercosur under the PT Governments: The Rise and Fall of Multidimensional Regionalism

2021 ◽  
pp. 0094582X2110293
Author(s):  
Tatiana Berringer
Keyword(s):  
Financial Crisis ◽  
Regional Integration ◽  
Political Process ◽  
The Political ◽  
2008 Financial Crisis ◽  
The Social ◽  
Integration Mechanisms ◽  
The 2008 Financial Crisis ◽  
The Impact ◽  
The Relationship

An analysis of the relationship between classes and class fractions and Mercosur under the PT (Workers’ Party) governments suggests that the transition from the open regionalism of the 1990s to the multidimensional regionalism of the 2000s and the crisis of the latter were linked to the overlap between the regional integration mechanisms Unasur and Mercosur and the social base of the neodevelopmentalist front. Multidimensional regionalism went into crisis after 2012, when the country began to suffer the impact of the 2008 financial crisis and changes in international politics and when the political process that culminated in the 2016 coup began. Uma análise da relação entre as classes e frações de classe e o Mercosul dos governos PT sugere que a transição do regionalismo aberto dos anos 1990 para o regionalismo multidimensional dos anos 2000 e a crise deste últimoestão ligados à imbricação entre os processos de integração regional, Unasur e Mercosur, e a base social da frente neodesenvolvimentista. O regionalismo multidimensional entrou em crise a partir de 2012 quando o país começou a sofrer mais o impacto da crise financeira de 2008 e das transformações na política internacional e iniciou-se o processo político que culminou no golpe de 2016.

Why Inequality Matters: Some Economic Issues

2001 ◽  
Vol 15 (2) ◽  
pp. 3-28 ◽  
Author(s):  
Nancy Birdsall
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Poverty Reduction ◽  
Political Process ◽  
Well Being ◽  
Political Life ◽  
The Political ◽  
Economic Policies ◽  
Industrialized Countries ◽  
Political Costs

Many industrialized countries, developing countries, and countries that have recently made the transition from communism to market-oriented economies are characterized by high and increasing income inequality. Trends in income inequality have been understood to have ethical significance for different reasons. Some have argued that lessening income inequality is a valuable goal in itself. This essay, on the other hand, focuses on three instrumental reasons for pursuing economic policies that engender less income inequality, particularly in developing countries.• Inequality can inhibit growth and slow poverty reduction.• Inequality often undermines the political process: that may lead to an inadequate social contract and may trigger bad economic policies-with ill effects on growth, human development, and poverty reduction.• Inequality may undermine civic and social as well as political life, and inhibit certain kinds of collective decision-making; at the societal level it may also generate its own self-justifying tolerance, perpetuating a high inequality equilibrium despite the potential economic and political costs.The author concludes that while societies with relatively high income inequality can, in principle, be equitable, it is more likely that income differentials will compound and aggravate unfairness in the allocation of opportunities, the functioning of the political process, and efforts to improve the well-being of the least advantaged.

VOTING ONESELF INTO A CRISIS

2016 ◽  
Vol 20 (4) ◽  
pp. 954-984 ◽  
Author(s):  
Hans-Jörg Beilharz ◽  
Hans Gersbach
Keyword(s):  
Political Process ◽  
The Political ◽  
Nominal Wage ◽  
Economic Policies ◽  
Tax Rates ◽  
Direct Effects ◽  
Real Wages ◽  
Market Clearing ◽  
Governmental Regulation ◽  
Economic Relationships

We suggest that voters' lack of recognition of complex economic links may give rise to economic policies that eventually lead to a crisis. We consider a two-sector economy in which a majoritarian political process determines governmental regulation in one sector: a minimum nominal wage. If voters recognize general equilibrium feedbacks, workers favoring market-clearing wages will form a majority across sectors. If voters take into account only direct effects in the regulated sector, not only workers that enjoy minimum wages but also workers in the other sector are willing to vote for wage rises in each period. The reason is that they expect higher real wages for themselves, too. The political process leads to constantly rising unemployment and tax rates. The resulting crisis may trigger new insights into economic relationships on the part of the voters and may reverse bad times.

From Political Reform and Economic Crisis to Coup d'éétat in Thailand: The Twists and Turns of the Political Economy, 1997––2006

Asian Survey ◽  
2007 ◽  
Vol 47 (6) ◽  
pp. 872-893 ◽  
Author(s):  
Kitti Prasirtsuk
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Political Reform ◽  
Asian Financial Crisis ◽  
Political Crisis ◽  
The Political ◽  
Economic Downturn

Political reform and the Asian financial crisis set the pretexts for the Thai political crisis. The financial crisis spawned certain big businesses that survived the economic downturn, while the 1997 Constitution eased their ability to make political inroads. In the end, Thaksin's business-centered administration so disrupted the traditional bases of society and government that it was overthrown by a coup d'éétat in 2006.

Lessons from East Asia

1998 ◽  
Vol 23 (4) ◽  
pp. 3-10
Author(s):  
C Rangarajan
Keyword(s):  
Financial Crisis ◽  
East Asia ◽  
Supervisory Control ◽  
East Asian ◽  
Financial System ◽  
Recipient Country ◽  
Asian Financial Crisis ◽  
Capital Inflows ◽  
Capital Account ◽  
Capital Account Liberalization

A year has passed since the onset of the Asian financial crisis. We are not sure that we have seen the final act of the drama. The East Asian experience shows that if there is an open capital account, the recipient country must have a stricter system of monitoring the inflows. A supervisory control over the financial system must also be very stringent. A loose domestic financial system and large capital inflows are the worst combination. It invites danger. According to Rangarajan⁄ the lesson to draw from the East Asian crisis is that the capital account liberalization and reform of the financial system should move in tandem.

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