The Asian financial crisis and the role of the IMF: A survey

Abstract

This paper begins with a commentary on the unfolding of the Asian crisis, and includes summary information on the effect of the crisis on the rate of economic growth and unemployment in the region. A review of current thinking on the causes of the crisis follows. This review evaluates whether the Asian crisis was caused primarily by weaknesses in the affected economies, such as inappropriate exchange rate policies and inadequate financial regulation, or by international market failures. The paper concludes with a critical analysis of the International Monetary Fund's role in the crisis.