Japan's Fifteen-Year Long Crisis
My first answer is that the 1998 crisis was not, in fact, resolved all that easily. Bear in mind that there were really two crises: the high-speed capital-flight crises of Southeast Asia and the prolonged Japanese slump. The capital-flight crisis did subside quickly -- although even there it left permanent damage (Indonesia, with a bigger population than all the other crisis countries combined, has never recovered to its old growth track.) But Japan's woes went on and on. And Japan was the clearest omen for the United States...
Touche...
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Brad DeLong unsnarks!
Or should that be "de-snarks"?
December 16, 2008 12:50 PM | Reply | Permalink
By the way --
Wasn't the Southeast Asia capital-flight crisis (Malaysia, Thailand, Indonesia, and the Philippines) a 1997 event? Whereas, the LTCM low-up came out of the 1998 Russian debt-default crisis?
Aren't these separate events being confabulated?
December 16, 2008 12:57 PM | Reply | Permalink