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Yale University

Publication Date

Spring 2024

Program Name

Switzerland: International Studies and Multilateral Diplomacy

Abstract

This paper examines the economic stability of Asia in the face of a potential currency crisis through drawing upon the historical context provided by the 1997 East Asian Financial Crisis. It systematically explores the characteristics and precursors of currency crises, analyzes the Asia-Pacific region’s response to past financial upheavals, and evaluates current macroeconomic vulnerabilities as well as policy frameworks. By juxtaposing the changes in Asia’s financial landscape from the late 20th century to the present, the study identifies persistent structural weaknesses and the region’s ongoing exposure to volatile global financial markets. It also considers the possibility of emerging markets establishing regional currencies in response to geopolitical tensions and as a strategic buffer against the dominance of the US dollar. The paper concludes that while Asia is not on the immediate verge of a currency crisis, the risks are notable and continued monitoring of key indicators is essential.

Disciplines

Asian Studies | Corporate Finance | Economic History | International Relations | Macroeconomics | Regional Economics

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