Financial Crisis and Credit Crunch as a Result of Inefficient Financial Intermediation-with Reference to the Asian Financial Crisis »
Series: IMF Working Papers
Author(s): Zhaohui Chen , and Jorge Chan-Lau
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 September 1998
Keywords: Asian crisis, credit crunch, financial intermediary, capital flow, capital inflow inertia, capital inflow, capital outflow, capital flows
This paper develops a model of private debt financing under inefficient financial intermediation. It suggests a mechanism that can generate the following sequence of events observed in the recent Asian crisis: A pe...