The Same Crises in Different Countries: Mexico and South Korea
Journal Title: Ankara Üniversitesi Sosyal Bilimler Dergisi - Year 2012, Vol 3, Issue 1
Abstract
In this paper, the financial crises of Mexico (1994-95) and South Korea (1997) are analyzed. The similarities and dissimilarities among the two financial crises are evaluated by comparing the quantitative data. First of all, we have tried to discuss some of the indicators constructed to forecast financial crises. However, we have used these indicators as supplementary tools for understanding the crises, rather than as predictors. Secondly, our quantitative analyses primarily focus on the dynamics of capital movements. The findings of this study on the financial crises of Mexico and South Korea underline some similarities. The Mexican crisis emerged at a time when Mexico, as a country that established financial discipline and reduced inflation substantially, was considered as “successful”. And as for South Korea –a country that sustained stable growth for many years, with no public deficit and stable prices and a current account surplus– it could not avoid a boom-bust cycle, and was drawn into a crisis. In these two experiences, the rapid increase in capital –especially “hot money”- inflows caused by non-residents was an important factor of instability. In these two experiences, the rapid increase in capital –especially “hot money”- inflows caused by non-residents was an important factor of instability. Accordingly, when such inflows suddenly turn into outflows, they trigger off financial crises. Thus, we arrive at the conclusion that short term arbitrage-seeking speculative capital movements played a decisive role in two financial crises.
Authors and Affiliations
Nilgün Erdem
Keywords
Related Articles
- EP ID EP334845
- DOI -
- Views 76
- Downloads 0
The Significance of Traditional Culinary Culture in Terms of Nutrition
Human has to be nourished in order to grow and develop as well as to perform a variety of vital activities. Furthermore, an adequate and balanced nutrition is essential for human being not only to sustain health and inte...
Max Weber’s Attempt of Overcoming Duality of Positivism-Hermeneutics in the Context of Objectivity Problem in Sociology
In sociology, as both the researcher and the subject being examined are historical and cultural things, this makes the objectivity quite crucial and to take place in an important methodological discussions. In that direc...
Surveying of Turkish Music Maqams that Sultan Selim III. Han Devise
Sultans of Ottoman empire play a significant role in development of turkish music. Some of them are not only sultans but also musicians, painters, calligraphers and carpenters. Selim III (d.1808) who was the sultan of ot...
Effect of The Internet to Political Participation
Nowadays, internet is one of the most effective instrument of mass media. This study’s aim is to investigate effects of internet and social media on political behaviour and attitude of individuals. This study including i...
A Critical Evaluation of NLP Books
Various approaches that focused on communication skills have become influential in today’s world. Education for developing communication skills has turned out to be an indivisible part of adult education. These approache...