Since the 2008 global financial crisis, policymakers as well as academicians have been seeking to fathom why subsequent recoveries remain tenuous. Other outstanding issues that they have been trying to understand include: why do some economies grow faster than others? How should the exchange rate volatility be understood and what factors make an economy more likely to fall into an exchange rate crisis? What policies need to be taken during tranquil periods, and how should they be changed once the crisis is triggered? As a partial effort to meet such interests, this book provides insights into these issues.
This book examines growth and convergence (Part I), exchange rate volatility and the Asian crisis (Part II), and the global crisis (Part III). In addition, the book also draws lessons from South Korea's experiences - a country which has undergone three different crises and brisk recoveries (Part IV). The book also includes some practical and policy-oriented analysis. This is a truly comprehensive book bringing together varied topics and diversity under one common theme - economic growth and crisis.
Part I: Growth and Convergence 1. Industrialization, Convergence, and Patterns of Growth 2. The Other Side of Conditional Convergence 3. An Alternative Interpretation of Conditional Convergence Results Part II: Exchange Rate and Asian Crisis 4. The Predictive Ability of Alternative Models of Exchange Rate Volatility 5. Liberalization of Capital Flows in Korea: Big-Bang or Gradualism 6. Currency Crisis of Korea: Internal Weakness or External Interdependence 7. Interest Rates and Exchange Rates in the Korean, Philippine and Thai Exchange Rate Crises Part III: Global Crisis 8. House Prices in ASEAN+3: Recent Trends and Inter-Dependence 9. Crisis and Employment: the Case of Korea 10. Aggregate Demand Gap based on a Simple Structural VAR Model 11. Policy Reports for the G20 Summit Meetings Part IV: Crises and Recoveries of the Korean Economy 12. Korea’s Stabilization Policies in the 1980s 13. Overcoming the 1997-98 Crisis: Macroeconomic Policy Adjustments 14. The Monetary Policy Response to the Crisis 15. Responses of the Korean Economy to the Global Crisis: Another Currency Crisis?