The authors propose a two-step approach
for assessing the extent to which the fall in credit in
crisis-stricken East Asian countries was a supply- or
demand-induced phenomenon. The first step involves
estimating a demand function for excess liquid assets held
by commercial banks. The second step involves establishing
dynamic projections for the periods after the crisis and
assessing whether or not residuals are large enough to be
viewed as indicators of an "involuntary"
accumulation of excess reserves. The results for Thailand
suggest that the contraction in bank lending that
accompanied the crisis was the result of supply factors.
Thai firms (presumably small and medium-size ones) faced
binding constraints in getting access to credit markets
after the crisis.
Bibliographic Details
| Main Authors: |
Agenor, Pierre-Richard,
Aizenman, Joshua,
Hoffmaister, Alexander |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2000-11
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| Subjects: | AGGREGATE DEMAND,
ASSETS,
AUTOREGRESSION,
BALANCE SHEET,
BANK CREDIT,
BANK DEPOSITS,
BANK FOR INTERNATIONAL SETTLEMENTS,
BANK LENDING,
BANK LOANS,
BANK OF THAILAND,
BANKING SYSTEM,
BENCHMARK,
BONDS,
BOOK VALUE,
BORROWING,
CAPITAL MARKETS,
CENTRAL BANK,
COMMERCIAL BANKS,
CONCEPTUAL FRAMEWORK,
CONTAGION,
CORPORATE GOVERNANCE,
CREDIT MARKETS,
CREDIT RATIONING,
DEBT,
DEVALUATION,
DISCOUNT RATE,
ECONOMIC RESEARCH,
ECONOMIC TIME SERIES,
ECONOMICS,
ECONOMISTS,
ELASTICITIES,
ELASTICITY,
ELASTICITY OF SUPPLY,
EMERGING MARKET ECONOMIES,
EQUILIBRIUM,
EXCESS LIQUIDITY,
EXCHANGE RATE,
EXPECTED VALUE,
FINANCIAL CRISES,
FINANCIAL CRISIS,
FINANCIAL INSTITUTIONS,
FINANCIAL REFORM,
FINANCIAL SECTOR,
FISCAL POLICIES,
FORECASTS,
ILLIQUIDITY,
INCOME,
INFLATION,
INTEREST RATE,
INTEREST RATES,
INTERNATIONAL FINANCIAL STATISTICS,
INTERNATIONAL MONETARY FUND,
LENDING RATES,
LIQUID ASSETS,
LIQUIDITY,
LIQUIDITY COSTS, |
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| Online Access: | http://documents.worldbank.org/curated/en/2000/11/717461/credit-crunch-east-asia-can-bank-excess-liquid-assets-tell
https://hdl.handle.net/10986/19759
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