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In a world where capital moves freely across national borders, developing countries have increasingly been subjected to devastating financial crises caused by the sudden withdrawal of foreign capital. How do such crises develop? This book focuses on a novel causal path: that of miscommunication. By examining the determinants of Asia's financial crisis of 1997-98, it demonstrates why developing democracies are exceptionally vulnerable to breakdowns in communication between financial officials and the chief executive and outlines the disastrous consequences of such breakdowns.
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GLOBALIZATION, POLITICS, AND FINANCIAL TURMOIL asia’s banking crisis
In a world where capital moves freely across national borders, developing countries have increasingly been subjected to devastating financial crises caused by the sudden withdrawal of foreign capital. How do such crises come about? This book focuses on a novel causal path: that of miscommunication. It demonstrates how and why developing democracies are exceptionally vulnerable to breakdowns in communication between financial officials and the chief executive through a close examination of Asia’s financial crisis of 1997–8, and it outlines the disastrous consequences of such breakdowns. Shanker Satyanath is currently an assistant professor in the Department of Politics at New York University. He received his Masters in management from Northwestern University and his Ph.D. in political science from Columbia University.
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political economy of institutions and decisions Series Editors Randall Calvert, Washington University, St. Louis Thrainn Eggertsson, Max Planck Institute, Germany, and University of Iceland Founding Editors James E. Alt, Harvard University Douglass C. North, Washington University, St. Louis Other Books in the Series Alberto Alesina and Howard Rosenthal, Partisan Politics, Divided Government and the Economy Lee J. Alston, Thrainn Eggertsson, and Douglass C. North, eds., Empirical Studies in Institutional Change Lee J. Alston and Joseph P. Ferrie, Southern Paternalism and the Rise of the American Welfare State: Economics, Politics, and Institutions, 1865–1965 James E. Alt and Kenneth Shepsle, eds., Perspectives on Positive Political Economy Josephine T. Andrews, When Majorities Fail: The Russian Parliament, 1990–1993 Jeffrey S. Banks and Eric A. Hanushek, eds., Modern Political Economy: Old Topics, New Directions Yoram Barzel, Economic Analysis of Property Rights, 2nd edition Yoram Barzel, A Theory of the State: Economic Rights, Legal Rights, and the Scope of the State Robert Bates, Beyond the Miracle of the Market: The Political Economy of Agrarian Development in Kenya, 2nd edition Kelly H. Chang, Appointing Central Bankers: The Politics of Monetary Policy in the United States and the European Monetary Union Peter Cowhey and Mathew McCubbins, eds., Structure and Policy in Japan and the United States Gary W. Cox, The Efficient Secret: The Cabinet and the Development of Political Parties in Victorian England Gary W. Cox, Making Votes Count: Strategic Coordination in the World’s Electoral Systems Continued on page following index
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