Neglected aspects of the East Asian financial crisis

Abstract

The crisis of 1997 involved a serious disruption within the financial systems of the East Asian economies. A substantial literature on the causes and results of the crisis subsequently accumulated, and while there has been a certain convergence of opinion, a number of factors appear to be consistently ignored or given insufficient attention. An attempt is made below to correct this imbalance. Attention is initially focused on some of the key influences affecting financial systems, and particular consideration is given to the influence of space. The nature, form and causes of the crisis are then examined, along with a discussion of the post-crisis recovery and the role of the state in this connection. The commentary concludes with an identification of the more important implications of the crisis and the lessons to be learnt from these.