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Capital Market Crises: Liberalization, Fixed Exchange Rates and Market-Driven Destabilization

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Financial Liberalization and the Asian Crisis

Abstract

Everyone knows the epigraph to Anna Karenina, ‘Happy families are all alike; every unhappy family is unhappy in its own way’. Tolstoy may well have been right about families, but the extension of his judgement to economies hit by capital market crises distinctly fails. Their causes and unhappy consequences in Latin America and Asia over the past 20 years have many elements in common.

This paper draws heavily on the results of a project on International Capital Markets and the Future of Economic Policy, Center for Economic Policy Analysis, New School for Social Research, with support from the Ford Foundation. Comments by Alice Amsden, Jane D’Arista, Thorsten Block, Sandy Darity, Robertofrenkel, Gerry Helleiner, and the referees are gratefully acknowledged. An expanded version of this paper will be published by the United Nations Conference on Trade and Development.

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Authors
  1. Lance Taylor
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Editor information

Editors and Affiliations

  1. Faculty of Economics and Politics, University of Cambridge, UK

    Ha-Joon Chang (Assistant Director of Development Studies) (Assistant Director of Development Studies)

  2. Faculty of Economics and Politics, University of Cambridge, UK

    Gabriel Palma (Lecturer in Economics) (Lecturer in Economics)

  3. University of Cambridge, UK

    D. Hugh Whittaker (Reader in Japanese and Comparative Economic Sociology, Assistant Director of ESRC Centre for Business Research) (Reader in Japanese and Comparative Economic Sociology, Assistant Director of ESRC Centre for Business Research)

Copyright information

© 2001 Cambridge Political Economy Society

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Taylor, L. (2001). Capital Market Crises: Liberalization, Fixed Exchange Rates and Market-Driven Destabilization. In: Chang, HJ., Palma, G., Whittaker, D.H. (eds) Financial Liberalization and the Asian Crisis. Palgrave Macmillan, London. https://doi.org/10.1057/9780230518629_3

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