Crisis and conspiracy

Article Abstract:

Some analysts believe that US financial, and possibly political, institutions conspired to cause the Asian economic crisis. The conspiracy theorists believe that financial institutions engineered the crisis to create financial opportunities, or that politicians engineered the crisis to create opportunities for social and economic reforms in Asia. Reasons for the implausibility of the theories include the fact that financial market players operate competitively rather than collusively, and that governments cannot manipulate economically self-interested investors.

Evaluation, Column, Causes of, Conspiracy, Depressions, Economic depressions

---

Free those exchange rates

Article Abstract:

Controls on portfolio inflows imposed by the governments of Asia's emerging markets generally are less efficient than currency liberalization, and have more negative side-effects. Most want low exchange rates to bolster the overseas sale of goods competitive only on price, but when exchange rates are free to rise in response to investment inflows, rising rates appropriately push the economy to find new strengths. They would also depress excessive capital inflows and permit better control of monetary policy.

---

Hard money made easy

Article Abstract:

The collapse of the European Monetary System (EMS) is mainly due to the lack of a stable foundation for exchange rates. Fluctuations in exchange rates distort the information prices provide to regulate trade flows. Financial authorities need to develop hard currencies which represent the real relative value of products and services rather than the arbitrary financial policies of governments.

Editorial, Analysis, European Monetary System

Similar abstracts:

• Abstracts: The pros and cons of privatisation. Management teams feel the heat. Vendors become drivers
• Abstracts: Mineral waters and related drinks in Germany. Food & beverage market overview
• Abstracts: China and U.S. show hope in latest piracy talks. Grant China accession to the WTO before it's too late. Dole sends mixed message to China by backing MFN, regional defense plan
• Abstracts: Modern manners. 'My best friend betrayed me.' How to be your best; here's how to walk into a roomful of people who don't know you and make them wish that they did
• Abstracts: Innovate, please. Teflon friends. The payola principle: why corruption plagues the Philippines

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.