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Record W334517791

The Asian Financial Crisis of 1997: The Case of Korea

2001· article· en· W334517791 on OpenAlex
Suk H. Kim

Why this work is in the frame

A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

aboutThe title or abstract carries a Canadian signal from the geographic lexicon.
no affNo Canadian affiliation: this work is invisible to an affiliation-only frame.
No Canadian affiliation. An affiliation-only frame, the usual design, would never have seen this work. It is one of the works that make the case for inverting the frame.

Bibliographic record

VenueMultinational Business Review · 2001
Typearticle
Languageen
FieldSocial Sciences
TopicAsian Industrial and Economic Development
Canadian institutionsnot available
Fundersnot available
KeywordsEconomicsFinancial crisisCurrent accountQuarter (Canadian coin)Real gross domestic productGross domestic productCurrencyShock (circulatory)Exchange rateEconomyInternational economicsMonetary economicsMacroeconomics
DOInot available

Abstract

fetched live from OpenAlex

For three decades, Korea was held up as an economic icon. The country's typical blend of high savings and investment rates, autocratic political systems, export-oriented businesses, restricted domestic markets, government capital allocation, and controlled financial systems were hailed as ideal ingredients for the strong economic growth of developing countries (Shapiro, 1999). However, in July 1997, a currency turmoil erupted in Thailand, spreading to Korea and other countries. This article investigates a number of practical issues about the Korean crisis of 1997--interlinked economies, the causes of the crisis, and policy responses. The Korean Economy Before The Crisis Prior to the crisis, the Korean economy was characterized by a dichotomy between a strong real economy and a growing financial problem. In 1996, Korea had experienced a severe trade shock and a cutback in business investment following a boom in the early 1990s. These forces had reduced GDP growth from an annual rate of 9 percent in 1994-95 to 7 percent in 1996. The first quarter of 1997, when GDP growth fell to 5.7 percent, appeared to mark a successful soft landing (OECD, 1998). Although domestic demand was weak, GDP still grew 6 percent during the first three quarters of 1997. Other macroeconomic statistics, such as inflation (4.3 percent) and unemployment (2.3 percent) were low by Korean historical standard as well as OECD standards. At the same time, the current account deficit, which had soared to $23 billion in 1996, had been cut in half by the third quarter of 1997. Thus, many analysts concluded that the economy was firmly underpinned by cautious monetary and fiscal policies. An Economic Crisis in Thailand Spread Throughout the World International capital flows caused booms and busts for Thailand's economy. How could an economic crisis in an emerging economy, such as Thailand's, could spread throughout the world. Thailand's economy surged until early 1997 partly because the Thais found they could borrow dollars at low interest rates overseas more cheaply than they could the baht at home. By late 1996, foreign investors began to move their money out of Thailand because they worried about Thais' ability to repay. In February 1997, foreign investors and Thai companies rushed to convert their baht to dollars. The Thai central bank responded by buying baht with its dollar reserves and raising interest rates. The rise in interest rates drove prices for stocks and land downward. This dynamic situation drew attention to serious problems in the Thai economy: a huge foreign debt, trade deficits, and a banking system weakened by the heavy burden of unpaid loans. The Thai central bank ran out of dollars to support the baht. On July 2, 1997, the central bank stopped to defend the baht's fixed value against the dollar. And then the currency lost 16 percent of its value in one day. Investors and companies in the Philippine, Malaysia, Indonesia, and Korea realized that these economies shared all of Thailand's problems. So, investors and companies rushed to convert local currencies into dollars. And then, the peso, ringgit, rupiah, and won toppled in value like dominos in a row. In the fourth quarter of 1997, the International Monetary Fund (IMF) arranged emergency rescue packages of $18 billion for Thailand, $43 billion for Indonesia, and $58 billion for Korea. By the end of 1998, the Asian crisis of 1997 spread to Russia, Brazil, and many other countries. Again, the IMF arranged bail-out packages of $23 billion for Russia in July 1998 and $42 for Brazil in November 1998. This means that since mid-summer 1997, IMF-led rescue packages for Asia, Russia, and Brazil racked up some $184 billion to keep world markets safe. In theory, capital is a boon, enabling developing countries to reduce poverty and raise living standards. But the theory does not always work smoothly. Countries mismanage the inflows. …

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.947
Threshold uncertainty score0.360

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.001
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.044
GPT teacher head0.314
Teacher spread0.270 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it