The domestic effects of tight monetary policy in the wake of Thailand's financial crisis

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

One of the most contentious and important questions remaining about Asia's financial crisis is whether or not the policies advocated by the IMF were excessively severe, causing an unnecessary degree of damage to the domestic economies of Indonesia, South Korea, and Thailand. In Thailand, the country examined in this paper, the conditions for the IMF loan of August 1997 included the Thai government allowing weak financial firms to fail and implementing tight monetary policies. By May of 1998, only thirty-five of Thailand's ninety-one finance/securities companies still operated and four of Thailand's fifteen banks had been taken over by the government. Thailand's remaining banks and finance companies lived under the threat of having their capital written off and management replaced. This paper uses data envelopment analysis (DEA) to find empirical evidence that the resulting reduction of credit affected all sectors of Thailand's economy. The strong and healthy sectors of Thailand's economy were hurt, along with the weak sectors.

Original languageEnglish (US)
Pages (from-to)242-266
Number of pages25
JournalJournal of the Asia Pacific Economy
Volume7
Issue number2
DOIs
StatePublished - Dec 1 2002

Fingerprint

monetary policy
financial crisis
Thailand
IMF
finance
data envelopment analysis
economy
bank
damage
effect
South Korea
loan
Indonesia
credit
damages
data analysis
threat
firm
management
evidence

Keywords

  • Credit
  • Financial crisis
  • IMF
  • Long run
  • Short run

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Political Science and International Relations

Cite this

The domestic effects of tight monetary policy in the wake of Thailand's financial crisis. / Leightner, Jonathan E.

In: Journal of the Asia Pacific Economy, Vol. 7, No. 2, 01.12.2002, p. 242-266.

Research output: Contribution to journalArticle

@article{26b2c7ac873749a19fb0fc75e62702fb,
title = "The domestic effects of tight monetary policy in the wake of Thailand's financial crisis",
abstract = "One of the most contentious and important questions remaining about Asia's financial crisis is whether or not the policies advocated by the IMF were excessively severe, causing an unnecessary degree of damage to the domestic economies of Indonesia, South Korea, and Thailand. In Thailand, the country examined in this paper, the conditions for the IMF loan of August 1997 included the Thai government allowing weak financial firms to fail and implementing tight monetary policies. By May of 1998, only thirty-five of Thailand's ninety-one finance/securities companies still operated and four of Thailand's fifteen banks had been taken over by the government. Thailand's remaining banks and finance companies lived under the threat of having their capital written off and management replaced. This paper uses data envelopment analysis (DEA) to find empirical evidence that the resulting reduction of credit affected all sectors of Thailand's economy. The strong and healthy sectors of Thailand's economy were hurt, along with the weak sectors.",
keywords = "Credit, Financial crisis, IMF, Long run, Short run",
author = "Leightner, {Jonathan E}",
year = "2002",
month = "12",
day = "1",
doi = "10.1080/13547860220134833",
language = "English (US)",
volume = "7",
pages = "242--266",
journal = "Journal of the Asian Pacific Economy",
issn = "1354-7860",
publisher = "Routledge",
number = "2",

}

TY - JOUR

T1 - The domestic effects of tight monetary policy in the wake of Thailand's financial crisis

AU - Leightner, Jonathan E

PY - 2002/12/1

Y1 - 2002/12/1

N2 - One of the most contentious and important questions remaining about Asia's financial crisis is whether or not the policies advocated by the IMF were excessively severe, causing an unnecessary degree of damage to the domestic economies of Indonesia, South Korea, and Thailand. In Thailand, the country examined in this paper, the conditions for the IMF loan of August 1997 included the Thai government allowing weak financial firms to fail and implementing tight monetary policies. By May of 1998, only thirty-five of Thailand's ninety-one finance/securities companies still operated and four of Thailand's fifteen banks had been taken over by the government. Thailand's remaining banks and finance companies lived under the threat of having their capital written off and management replaced. This paper uses data envelopment analysis (DEA) to find empirical evidence that the resulting reduction of credit affected all sectors of Thailand's economy. The strong and healthy sectors of Thailand's economy were hurt, along with the weak sectors.

AB - One of the most contentious and important questions remaining about Asia's financial crisis is whether or not the policies advocated by the IMF were excessively severe, causing an unnecessary degree of damage to the domestic economies of Indonesia, South Korea, and Thailand. In Thailand, the country examined in this paper, the conditions for the IMF loan of August 1997 included the Thai government allowing weak financial firms to fail and implementing tight monetary policies. By May of 1998, only thirty-five of Thailand's ninety-one finance/securities companies still operated and four of Thailand's fifteen banks had been taken over by the government. Thailand's remaining banks and finance companies lived under the threat of having their capital written off and management replaced. This paper uses data envelopment analysis (DEA) to find empirical evidence that the resulting reduction of credit affected all sectors of Thailand's economy. The strong and healthy sectors of Thailand's economy were hurt, along with the weak sectors.

KW - Credit

KW - Financial crisis

KW - IMF

KW - Long run

KW - Short run

UR - http://www.scopus.com/inward/record.url?scp=0036953249&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0036953249&partnerID=8YFLogxK

U2 - 10.1080/13547860220134833

DO - 10.1080/13547860220134833

M3 - Article

VL - 7

SP - 242

EP - 266

JO - Journal of the Asian Pacific Economy

JF - Journal of the Asian Pacific Economy

SN - 1354-7860

IS - 2

ER -