publication . Preprint . 2001

Financial Liberalisation and the South Korean Financial Crisis: Some Qualitative Evidence

Kevin Amess; Panicos Demetriades;
Open Access
  • Published: 01 Mar 2001
This paper provides a novel analysis of the South Korean financial crisis drawing on the findings of a unique survey of IMF/World Bank officials and South Korean economists. The survey reveals that over-optimism and inadequate recognition of financial risks inadvertently led to excessive risk taking by Korean financial intermediaries. It also indicates that the sources of over-optimistic assessments of East Asian economies, including Korea, were mainly to be found outside East Asia, including the IMF, the World Bank, western media and analysts. Weaknesses in risk management were the result of (i) lack of expertise in relation to handling the risks associated wit...
free text keywords: Financial liberalisation; financial crisis; over-optimism; moral hazard, jel:F33, jel:G11, jel:G15, jel:G18, jel:O16
Any information missing or wrong?Report an Issue