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Full-Text Articles in Social and Behavioral Sciences

Globalization Of Financial Markets And The Asian Crisis: Some Lessons For Third World Developing Countries, Jong H. Park Oct 2002

Globalization Of Financial Markets And The Asian Crisis: Some Lessons For Third World Developing Countries, Jong H. Park

Faculty Publications

Park examines the causes of the Asian financial crisis and draws some lessons and implications for a series of issues, which may be of particular relevance to the Third World developing countries. These issues include: the appropriate role of the International Monetary Fund as an international agency in charge of helping member countries to maintain financial stability; the choice of an appropriate exchange rate regime and use of restrictions on private capital flows in the face of rising globalization; and the debate on the East Asian model of economic development.


Less Developed Country Business Cycles, Hing-Man Leung Mar 2002

Less Developed Country Business Cycles, Hing-Man Leung

Research Collection School Of Economics

Less developed countries (LDCs) have experienced considerable business cycles in recent decades. This coincides with significant increases in their external debt to GDP ratios. Recent theoretical credit cycles literature suggests that indebtedness, and the resulting liquidity constraints, could explain LDC business cycles. This paper builds a macroeconomic model to trace the LDC income paths. In this model indebtedness and liquidity constraints reduce aggregate investment. We use the World Data (1995) to calibrate for the convergence parameter. It is found that LDC cycles are convergent and non-oscillatory, and indebtedness delays the return to long-term steady state income.