এক্সএক্সভি xxvii 2020 ভারতীয় রেলপথ। এসজে টি 44। 2020-09-13. What the IMF Should Do 2019-11-17

The Asian Crisis: A View from the IMF

Added to this was the fact that as currencies continued to slide, the debt service costs of the domestic private sector increased. It is also to seek to avert crises by keeping close watch on member countries' economies and to warn them when trouble threatens. As the crises unfolded, political uncertainties and doubts about the authorities' commitment and ability to implement the necessary adjustment and reforms exacerbated pressures on currencies and stock markets. Moreover, when interest rate action is delayed, confidence continues to erode. The depreciation of the baht could be expected to erode the competitiveness of Thailand's trade competitors, and this put some downward pressure on their currencies.

Next

What the IMF Should Do

Institutional changes are under way to strengthen financial sector regulation and supervision, increase transparency in the corporate and government sectors, create a more level playing field for private sector activity, and open Asian markets to foreign participants. And sometimes despite our continuous efforts to strengthen our surveillance over member policies and performance, we might see some of the key elements of an emerging crisis, but fail to draw their full implications. Legislated Diversion An international credit facility can work only if it provides credit rapidly, at an above-market interest rate that discourages unnecessary use and in exchange for good collateral. To reverse this process, countries have to make it more attractive to hold domestic currency, and that means temporarily raising interest rates, even if this complicates the situation of weak banks and corporations. I do not share the view that we should step aside in these cases.

Next

The Asian Crisis: A View from the IMF

And in each case, it is clear that without Fund assistance, things would have been much worse. The guiding concepts should be rebuilding market confidence, focusing on the specific liquidity problems and maintaining as much growth as possible while reducing the current-account deficit. Starting in 1996, a confluence of domestic and external shocks revealed weaknesses in the Thai economy that until then had been masked by the rapid pace of economic growth and the weakness of the U. Leaders of emerging-market economies see their national capital markets as small relative to the internationally mobile capital that can be arrayed against them. In this respect, markets have overreacted. The availability of a credit facility could by itself repulse a purely speculative attack on a healthy currency. Important measures to deal with banking sector difficulties and to increase confidence in the banks should be announced in the next few days.

Next

What the IMF Should Do

A country can provide such collateral by pledging a share of the foreign exchange earned by its exporters. Although the problems in these countries were mostly homegrown, developments in the advanced economies and global financial markets contributed significantly to the buildup of the imbalances that eventually led to the crises. Contagion to other economies in the region appeared relentless. A foreign-exchange facility of this sort need not create moral-hazard problems for either the international lenders or the emerging-market countries. On the side of the lenders, despite the constant talk of bailouts, most investors have made substantial losses in the crisis. Nevertheless, it does not take a great deal of imagination to see how the problems in Asia could take on larger proportions, with more profound effects on global growth and financial market stability.

Next

英特尔核芯显卡驱动程序 20.19.15.4416 for Windows 10

Once confidence is restored, interest rates should return to more normal levels. The borrowing country pays interest at a floating market rate on the amount it has borrowed, while the country whose currency is being used receives interest. Asia's economic success The crisis in Asia has occurred after several decades of outstanding economic performance. To this end, non-viable institutions are being closed down, and other institutions are required to come up with restructuring plans and comply--within a reasonable period that varies according to country circumstances--with internationally accepted best practices, including the Basle capital adequacy standards and internationally accepted accounting practices and disclosure rules. They would also not be protected against countries that become internationally insolvent and cannot earn the foreign exchange to meet their international obligations.

Next

The Asian Crisis: A View from the IMF

However, it would be a mistake to allow clearly bankrupt banks to remain open, as this would be a recipe for perpetuating the region's financial crisis, not resolving it. These economies are fundamentally sound, with remarkable long-term growth of both gross domestic product and exports. Some lenders may be forced to write down their claims, especially against corporate borrowers. However, we cannot remain indifferent to the level of the fiscal deficit, particularly since a country in crisis typically has only limited access to borrowing and since the alternative of printing money would be potentially disastrous in these circumstances. The best course is to recapitalize or close insolvent banks, protect small depositors, and require shareholders to take their losses.

Next

英特尔核芯显卡驱动程序 20.19.15.4416 for Windows 10

The developing and emerging market economies of Asia have not just been major exporters; they have been an increasingly important market for other countries' exports. Indeed, during the 30 years preceding the crisis per capita income levels had increased tenfold in Korea, fivefold in Thailand, and fourfold in Malaysia. Moreover, per capita income levels in Hong Kong and Singapore now exceed those in some industrial countries. With stock markets and exchange rates plunging, foreign equity investors have lost nearly three-quarters of the value of their equity holdings in some Asian markets. In short, the best approach is to effect a sharp, but temporary, increase in interest rates to stem the outflow of capital, while making a decisive start on the longer-term tasks of restructuring the financial sector, bringing financial sector regulation and supervision up to international standards, and increasing domestic competition and transparency.

Next

What the IMF Should Do

Other observers have advocated more expansionary fiscal programs to offset the inevitable slowdown in economic growth. At the same time, banking regulation and supervision must be improved. None of this will be easy, and unfortunately, the pace of economic activity in these economies will inevitably slow. They are often described as an expense to the taxpayer. In addition, foreign commercial banks are having to roll over their loans at a time when they would not normally choose to do so. Likewise, we have been urged not to recommend rapid action on banks. Moreover, after their experience in Thailand, markets began to take a closer look at the problems in Indonesia, Korea, and other neighboring countries.

Next