The Asian economic crisis raised the need of a union of countries to stabilize the global economy and to support continuous development.
G20 held a summit talk to resolve the current global economy crisis by the necessary cooperation of developed countries and rising countries.
Japan’s Economy after the Global Economy Crisis and Its Responses
The Four Unfavorable Factors in the Japan
II. 2. The progress of Yen carry trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was broadening, Yen carry assets were paid off. In addition, The sharp increase in foreign bank as
East 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 foll
Japan.
II. 2. The progress of Yen carry trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was broadening, Yen carry assets were paid off. In addition
East and Russia.
Causes of the Global Imbalances :
- Events in the United States : Saving-Investment Imbalances
- Events Outside the US :
Inadequate Investments and Excessive Savings in Asia
Several signs of financial crisis :
- Real estate values rose
High current deficits was risen simultaneously
in many countries
- Extraordinary levels of leverage used
The fin