crisis solution, exchange rate management and financial policy coordination within the IMF have been designed to perpetuate the dominance of a few industrial countries, specifically the USA and the European Union member states. That is, the IMF lending decisions is a result of American policymakers and countries in which American banks are highly exposed and the governments closely allied with th
financial crisis :
- Real estate values rose
High current deficits was risen simultaneously
in many countries
- Extraordinary levels of leverage used
The financial crisis were influenced by global imbalance :
Asians accumulated foreign reserves for better future (Saving Glut)
- Saving Glut influenced interests rate of developed countries to be low
Many methods of inve
Asian models
Is China following the East Asian Model?
In relation to “East Asian Model”…
Questions: China would achieve another ‘East Asian Miracle’? China could avoid another financial crisis?
Some argued that China is following Japan-Korea model (Li and Lian 1999; Li, Li, and Zhang 2000)
“market-preserving authoritarianism”
Some argued that China is more likely follow th
financial problems aggravated, Korean luxury goods market (Myungpoom in Korean) increased 12% in sales and has shown constant 10% market improvements since 1996 each year. In 2007, the Korean luxury goods market totaled 3 trillion won, ranking 3rd in Asian market (following Japan and Hong Kong) and occupying 2% of world economy. Korea’s luxury goods market is composed of department stores, bran
non-discretionary impacts
Discretionary fiscal stimulus
Asian Development Bank (2009a) also notes that a country's ability to withstand shocks depends on a set of variables that may either amplify or absorb them.
Countries with strong macroeconomic fundamentals would be better able to withstand or absorb shocks, and those with weak and narrower financial systems, less so.