Interpreting the Korean Crisis of 2008

• 발행기관: 한국사회경제학회
• 저자명: Kim Ginil
• 간행물 정보: 『사회경제평론』 제38호, 241~259쪽, 전체 19쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2012.05.31

영문 초록

This paper reviews four different kinds of currency crisis models proposed to explain the Korean crisis of 1997 to examine which model is more relevant to explain the Korean crisis of 2008. According to the author’s investigation, the ‘Frenkel-Neftci’ cycle is more relevant model to interpret the Korean crisis of 2008. In 2008, spreads opened due to, first, high interest rate policy by the Korean government aimed to suppress real estate price increase, and, second, the expectation about exchange rate appreciation, and thirdly stock market returns after recovering the crisis. Then the international capital market catastrophe due to the subprime crises produced the sudden change of expectation of the market participants. Huge capital outflows resulted from the credit crunch in the international capital markets, and the possibility of exchange rate depreciation by the Korean government to promote exports in the course of the global recession.

목차

Introduction

Models of Currency Crisis

Interpreting the Korean crisis of 2008

Concluding remarks

References

키워드

‘Frenkel-Neftci’ cycle Asian currency crisis subprime crisis