Asia-Pacific Economic Update. Volume 1. Economic Strategy, Context and Performance
Abstract
Financial turmoil was prevalent throughout the 1990s. Financial crises broke out in Europe, Latin America, and Asia. (1) In Europe, German economic and monetary mistakes sharply clashed with a flawed process leading to European economic and monetary unity. (2) In Latin America, a high current account deficit and a rigid exchange rate regime in Mexico promoted financial chaos and a chaotic collapse of the peso. (3) Similarly, high current account deficits and rigid exchange rate regimes contributed to financial turbulence and a disorderly free-fall of Asian foreign exchange rates. Floating exchange rate regimes are needed to optimize free international capital markets.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2002
- Accession Number
- ADA405768