The Main Lesson from the Asian Crisis: “Dragons” should not fundamentally change their policies Kunibert Raffer

This paper argues that egged on by the Bretton Wood Institutions in general, successful Asian economies started to embark on the very policies that were officially known to trigger catastrophe, as had been proved in other parts of the world and this paved the way for Asian financial crisis of the nineties. Liberating themselves from the IFI-dictates seems to be the optimal policy response for the Asian economies, because the “reforms” demanded by IFIs not only left untreated the problem triggering the Asian crisis but instead tried to enforce an unfeasible set of neoliberal policies, as well as to take economic advantage of the crisis.

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