haku: @indexterm BALANCE OF PAYMENTS / yhteensä: 219
viite: 16 / 219
| Tekijä: | Corsetti, G. Pesenti, P. Roubini, N. |
| Otsikko: | A model of the Asian crisis |
| Lehti: | European Economic Review
1999 : JUN, VOL. 43:7, p. 1211-1236 |
| Asiasana: | ASIA CRISES MODELS MORAL HAZARD BALANCE OF PAYMENTS |
| Kieli: | eng |
| Tiivistelmä: | This paper develops an interpretation of the Asian meltdown focused on moral hazard as the common source of over-investments, excessive external borrowing, and current account deficits. To the extent that foreign creditors are willing to lend to domestic agents against future bail-out revenue from the government, unprofitable projects and cash shortfalls are re-financed through external borrowing. While public deficits need not be high before a crisis, the eventual refusal of foreign creditors to refinance the country's cumulative losses forces the government to step in and guarantee the outstanding stock of external liabilities. |
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