02689oam 22004813a 450 991069356780332120230622022819.010.3386/w6680(NBER)w6680(CKB)3240000000021576(NjHacI)993240000000021576(EXLCZ)99324000000002157620230622d1998 fy 0engurcnu||||||||txtrdacontentcrdamediacrrdacarrierThe Onset of the East Asian Financial Crisis /Steven Radelet, Jeffrey SachsCambridge, MassNational Bureau of Economic Research1998Cambridge, Massachusetts :National Bureau of Economic Research,1998.©19981 online resourceillustrations (black and white);NBER working paper seriesno. w6680August 1998.This paper provides an early diagnosis of the financial crisis in Asia, focusing on the empirical record in the lead-up to the crisis. The main goal is to emphasize the role of financial panic as an essential element of the Asian crisis. At the core of the crisis were large-scale foreign capital inflows into financial systems that became vulnerable to panic. The paper finds that while there were significant underlying problems and weak fundamentals besetting the Asian economies at both a macroeconomic and a microeconomic level, the imbalances were not severe enough to warrant a financial crisis of the magnitude that took place in the latter half of 1997. A combination of panic on the part of the international investment community, policy mistakes at the onset of the crisis by Asian governments, and poorly designed international rescue programs turned the withdrawal of foreign capital into a full-fledged financial panic, and deepened the crisis more than was either necessary or inevitable.Working Paper Series (National Bureau of Economic Research)no. w6680.Capital movementsEconometric modelsFinancial crisesEconometric modelsInvestments, ForeignEconometric modelsCapital movementsEconometric models.Financial crisesEconometric models.Investments, ForeignEconometric models.332.042Radelet Steven1365196Sachs Jeffrey120952National Bureau of Economic Research.MaCbNBERMaCbNBERBOOK9910693567803321The Onset of the East Asian Financial Crisis3386779UNINA