Contents |
Preface |
|
I |
Overview
Olin Liu
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|
II |
Comparative Review of Policies and Performance, 1997–2000
Kanitta Meesook
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Initial Conditions and Economic Structure
Policy Responses and Performance
Time Frame of Malaysia's Response to the Crisis
Appendix. Graphical Overview of Indicators During Precrisis, Crisis, and Recovery |
|
III |
Potential Output and Inflation
II Houng Lee and Yougesh Khatri
 Introduction
Measuring Potential Output
Estimating the Output Gap
Determinants of Inflation
Appendix. Approaches to Measuring Potential Output
References |
|
IV |
Challenges to Fiscal Management
Olin Liu
 Introduction and Recent Developments
Fiscal Policy Rules and Recent Experience
Enhancing Fiscal Policy Responsiveness to Business Cycles
Conclusions
Appendix I. Off-Budget and Quasi-Fiscal Operations
Appendix II. Fiscal Measurement: Methodology Note
References |
|
V |
Capital Controls in Response to the Asian Crisis
Natalia Tamirisa
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Background
Design and Enforcement of Capital Controls
Capital Controls and Economic Performance
Policy Considerations
Appendix. A Preliminary Empirical Analysis of Malaysia's Capital Controls
References |
|
VI |
Financial Sector Issues
Mark H. Krysl and Michael Moore
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Background
Recent Financial Sector Performance
Financial Sector Restructuring: Comparative Perspective
Toward a More Resilient Banking Sector |
|
VII |
Corporate Performance and Reform
Yougesh Khatri
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Key Features of the Corporate Sector
Corporate Sector and Financial Crises
Corporate Performance
Progress with Corporate Reforms
Summary and Conclusions
References |
|
Boxes |
4.1. |
Fiscal Policy in Malaysia, 1997–2000 |
4.2. |
Fiscal Policy Responses to the Business Cycle |
5.1. |
Singapore: Reconciling Policy on the Internationalization of the Singapore Dollar and Financial Development Objectives |
5.2. |
Korea: Gradual Liberalization with a Focus on Control of Won Lending to Nonresidents |
5.3. |
Thailand: Relatively Liberal Policy in Normal Times, Temporary Capital Controls to Limit Currency Speculation |
5.4. |
Japan: Toward the Internationalization of the Yen |
6.1. |
Danaharta: Asset Management and Recovery |
6.2. |
Danamodal: Bank Recapitalization |
6.3. |
Corporate Debt Restructuring Committee |
7.1. |
The Insider and Outsider Systems of Corporate Governance |
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Figures
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2.1. |
Exchange Rate Developments |
2.2. |
Bank Lending |
2.3. |
Domestic Investment in Selected Asian Countries |
2.4. |
Investment and Real GDP Growth |
2.5. |
Market Capitalization in Selected Asian Countries |
2.6. |
Private Sector Credit in Selected Asian Countries |
2.7. |
Cumulative and Net Portfolio Flows |
3.1. |
Comparing Estimates of Output Gap (Adj. SP) and Without (SP) the Interpolated Point in 1998 |
3.2. |
Inflation, 1992–2001 |
3.3. |
Inflation, 1995–2001 |
4.1. |
Fiscal Indicators |
4.2. |
Fiscal Budget and Actual Balance |
5.1. |
The Evolution of Capital Controls |
5.2. |
Sovereign Bond Spreads of Selected Asian Countries |
5.3. |
Net Portfolio Flows |
5.4. |
Volume of Interbank Spot and Swap Transactions in Kuala Lumpur Foreign Exchange Market |
5.5. |
Selected Asian Countries: Stock Market Composite Indices |
5.6. |
Average Daily Trading Volume at the KLOFFE and the COMMEX |
5.7. |
Capital Controls |
7.1. |
Selected Asian Countries: Capital Market Overview |
7.2. |
Malaysian Corporate Sector: Total Assets and Expenditures Relative to Total Revenue |
7.3. |
Indices of Efficiency, Exogenous Change and TFP |
7.4. |
Malaysian Corporate Sector: Performance Indicators |
|
Appendix Figures |
A.2.1. |
Selected Asian Countries: Precrisis Macroeconomic Indicators |
A.2.2. |
Selected Asian Countries: Precrisis Financial Indicators |
A.2.3. |
Selected Asian Countries: Economic Indicators During the Crisis Period |
A.2.4. |
Selected Asian Countries: Economic Developments |
A.2.5. |
Selected Asian Countries: Financial Market Indicators During the Crisis Period |
A.2.6. |
Selected Asian Countries: Economic Performance During the Recovery Stage |
A.2.7. |
Selected Asian Countries: Financial Indicators During the Recovery Stage |
A.2.8. |
Selected Asian Countries: Fiscal Indicators |
A.2.9. |
Selected Asian Countries: Monetary Indicators |
|
Tables
|
2.1. |
Asian Crisis Countries: Selected Structural Indicators, 1996–2000 |
2.2. |
Major Economic Policy Measures During Emergence of Crisis and Early Stage of Contagion |
2.3. |
Major Economic Policy Measures, Initial Policy Responses, and Continued Turmoil |
2.4. |
Major Economic Policy Measures, Exchange and Capital Controls, and Aftermath |
3.1. |
Estimates of Output Gap, 1996–2001 |
3.2. |
F and SC Statistics for Sequential Reduction from VAR(4) to VAR(1) |
3.3. |
Cointegration Analysis of Price Data, 1991Q2 to 2000Q1 |
3.4. |
Result of Inflation Estimation by OLS, 1992Q2–1999Q4 |
4.1. |
Quasi-Fiscal Contingent Liabilities |
5.1. |
Key Changes in Capital Account Regulations |
5.2. |
Sovereign Credit Ratings |
5.3. |
Net Foreign Direct Investment in Selected Asian Countries |
5.4. |
A Summary of Investment Regulations for Entry into and Exit from Selected Markets, end-1998 |
5.5. |
Taxation of Capital Gains on Portfolio Investment in Selected Emerging Markets, 1999 |
5.6. |
A Summary of Controls on the International Use of Domestic Currency, end-1998 |
5.7. |
Data |
5.8. |
Unit Root Tests |
5.9. |
A Cointegration Analysis |
5.10. |
A Conditional Error Correction Model of Portfolio Investment |
6.1. |
The Banking System (Depository Financial Institutions) |
6.2. |
The Trend in Nonperforming Loans |
6.3. |
Asset Quality Indicators |
6.4. |
Financial Sector Restructuring in Malaysia, Korea, and Thailand |
6.5. |
Selected Financial Indicators of the Asian Crisis Countries |
6.6. |
Changes in Prudential Standards in Malaysia, Korea, and Thailand |
6.7. |
Proposed Banking Groups |
6.8. |
Steps to Improve Prudential Supervision and Regulation in Malaysia, Korea, and Thailand |
7.1. |
A Comparison of Legal Protection, Accounting Standards, Institutions, and Enforcement in Various Countries |
7.2. |
Financial Ratios for Listed Nonfinancial Companies in Malaysia |
7.3. |
Operational Performance of Publicly Traded Corporations and Share of Distressed Corporations in Selected Asian Countries |
7.4. |
Debt/Equity Ratios in Selected Economies |
7.5. |
A Comparison of Stock Market Returns and Risk in Selected Economies |