The document discusses the Asian Financial Crisis of 1997-1998. It provides background on the currency devaluations in Southeast Asian countries and analyzes various factors that contributed to the crisis, including declining export earnings, excessive investment, large current account deficits, and overvalued currencies. The crisis had widespread impacts, including stock market collapses, calls for IMF rescue plans, and corporate bankruptcy in affected countries. U.S. companies were advised to consider currency hedging strategies and pursue merger opportunities to mitigate financial risks.
This document discusses Islamic banking and its role in international financial markets. It provides an overview of Islamic banking in Malaysia, where about 10% of banking transactions are Islamic-based. Globally, Islamic banking assets total around $260 billion, though they account for only 1% of the global banking system. The document also discusses the evolution of international financial markets and their increasing sophistication, concentration, and integration. It notes that Islamic markets have emerged to fill market needs, and that for Islamic finance to grow, it needs to create transparent, fair, and stable markets that satisfy customer needs.
The 1997 Malaysian currency crisis was caused by macroeconomic imbalances like large current account deficits financed by short-term capital inflows, as well as a sudden shift in market confidence. In response, the Malaysian government froze foreign currency accounts, fixed the exchange rate, and introduced capital controls. Key lessons from the crisis included the need for financial market reform, managing investor confidence, and accumulating large foreign reserves to prevent future speculative attacks.
The Asian financial crisis began in July 1997 in Thailand and spread to other Asian countries, causing stock market declines of 30% and recessions. It was caused by overvalued currencies from large capital inflows and an overreliance on short-term foreign borrowing, which led to currency depreciation and debt defaults when capital fled. While growth slowed, countries recovered through currency devaluations and reforms to financial regulation and oversight. China and other countries in East Asia have since maintained rapid growth through competitive export-led economies and investment in education.
This document discusses Japan's outward foreign direct investment (FDI) in the context of globalization. It covers several topics:
1. Determinants of outward FDI include agglomeration and dispersion forces as well as differences in factor prices that have led Japanese companies to invest sequentially across multiple Asian countries.
2. Asia's economic landscape has changed with intra-industry trade replacing inter-industry trade, particularly in parts and components. Imports within Asia now focus more on these intermediate goods.
3. Japan's outward FDI was initially concentrated in North America and Europe but is increasingly targeting Asia, particularly China, Taiwan, Korea, Hong Kong and the ASEAN nations.
We are in the eye of a hurricane in global trade, unlike anything anyone has seen in recent history. Andy Grove calls this time a strategic inflection point, “a time in the life of a business [or country] when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end,” (Grove, Only the Paranoid Survive). Our rules of thumb and assumptions are no longer valid, and countries we hadn’t considered to be competitors in the past are emerging ahead of the US. Listen and learn as Professor Doggett examines recent global trends and zeroes in on the future global economy as impacted by recent Chinese economic growth.
The document discusses current account deficits, global imbalances, and balance of payments. It provides details on Thailand's experience with current account deficits, devaluation of its currency, and liberalization policies during the Asian financial crisis of 1997-1998. It finds that devaluation and liberalization may help correct imbalances if done carefully and not extended beyond stabilization, as Thailand's economy recovered after the crisis through managed float of its currency, liquidation of troubled financial institutions, and debt restructuring. Global imbalances have narrowed since peaking in 2007-2008 during the financial crisis.
The document discusses the 1997 Asian Financial Crisis that originated in Thailand and spread to other Southeast Asian countries. It provides background on the "Four Asian Tigers" of high-growth economies prior to 1997. It then describes the events and impact of the crisis in Thailand, Indonesia, South Korea, Hong Kong, Malaysia and other nations. These included currency declines, falling stock markets, GDP declines and the need for IMF bailout packages. Causes of the crisis included easy foreign lending, real estate bubbles, and currency devaluations. The IMF was later criticized for its crisis response of imposing "structural adjustment" measures.
This document discusses Islamic banking and its role in international financial markets. It provides an overview of Islamic banking in Malaysia, where about 10% of banking transactions are Islamic-based. Globally, Islamic banking assets total around $260 billion, though they account for only 1% of the global banking system. The document also discusses the evolution of international financial markets and their increasing sophistication, concentration, and integration. It notes that Islamic markets have emerged to fill market needs, and that for Islamic finance to grow, it needs to create transparent, fair, and stable markets that satisfy customer needs.
The 1997 Malaysian currency crisis was caused by macroeconomic imbalances like large current account deficits financed by short-term capital inflows, as well as a sudden shift in market confidence. In response, the Malaysian government froze foreign currency accounts, fixed the exchange rate, and introduced capital controls. Key lessons from the crisis included the need for financial market reform, managing investor confidence, and accumulating large foreign reserves to prevent future speculative attacks.
The Asian financial crisis began in July 1997 in Thailand and spread to other Asian countries, causing stock market declines of 30% and recessions. It was caused by overvalued currencies from large capital inflows and an overreliance on short-term foreign borrowing, which led to currency depreciation and debt defaults when capital fled. While growth slowed, countries recovered through currency devaluations and reforms to financial regulation and oversight. China and other countries in East Asia have since maintained rapid growth through competitive export-led economies and investment in education.
This document discusses Japan's outward foreign direct investment (FDI) in the context of globalization. It covers several topics:
1. Determinants of outward FDI include agglomeration and dispersion forces as well as differences in factor prices that have led Japanese companies to invest sequentially across multiple Asian countries.
2. Asia's economic landscape has changed with intra-industry trade replacing inter-industry trade, particularly in parts and components. Imports within Asia now focus more on these intermediate goods.
3. Japan's outward FDI was initially concentrated in North America and Europe but is increasingly targeting Asia, particularly China, Taiwan, Korea, Hong Kong and the ASEAN nations.
We are in the eye of a hurricane in global trade, unlike anything anyone has seen in recent history. Andy Grove calls this time a strategic inflection point, “a time in the life of a business [or country] when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end,” (Grove, Only the Paranoid Survive). Our rules of thumb and assumptions are no longer valid, and countries we hadn’t considered to be competitors in the past are emerging ahead of the US. Listen and learn as Professor Doggett examines recent global trends and zeroes in on the future global economy as impacted by recent Chinese economic growth.
The document discusses current account deficits, global imbalances, and balance of payments. It provides details on Thailand's experience with current account deficits, devaluation of its currency, and liberalization policies during the Asian financial crisis of 1997-1998. It finds that devaluation and liberalization may help correct imbalances if done carefully and not extended beyond stabilization, as Thailand's economy recovered after the crisis through managed float of its currency, liquidation of troubled financial institutions, and debt restructuring. Global imbalances have narrowed since peaking in 2007-2008 during the financial crisis.
The document discusses the 1997 Asian Financial Crisis that originated in Thailand and spread to other Southeast Asian countries. It provides background on the "Four Asian Tigers" of high-growth economies prior to 1997. It then describes the events and impact of the crisis in Thailand, Indonesia, South Korea, Hong Kong, Malaysia and other nations. These included currency declines, falling stock markets, GDP declines and the need for IMF bailout packages. Causes of the crisis included easy foreign lending, real estate bubbles, and currency devaluations. The IMF was later criticized for its crisis response of imposing "structural adjustment" measures.
Industrial Policy and Upgrading for sustained growth: The Asian ExperienceEconomic Research Forum
Keun Lee - Seoul National University
ERF 24th Annual Conference
The New Normal in the Global Economy: Challenges & Prospects for MENA
July 8-10, 2018
Cairo, Egypt
What Is South East Asian Currency CrisisPujil Khanna
The document summarizes the 1997 Asian Financial Crisis that impacted countries in Southeast Asia. It discusses some of the key causes of the crisis, including excessive foreign borrowing by Thailand, Indonesia, and South Korea which led to large current account deficits. When the US raised interest rates, it caused investors to pull money out of Southeast Asia rapidly, severely depreciating currencies and causing economic turmoil and recessions across the region. The IMF intervened to provide loans and encourage reforms to stabilize economies and currencies.
Presentation talks about the crisis faced by Korea,Indonesia,Malaysia.
Some of the important reasons being BOP Deficits and Inefficient Financial Systems, drop in GDP and increase in Unemployment rate etc.
This document summarizes the shift from market-driven to institution-driven regionalization in East Asia. It finds that intra-regional trade and foreign direct investment has greatly increased, particularly in machinery and electronics. Production networks across East Asia have developed through offshoring and outsourcing. Recently, regional trade agreements and monetary cooperation frameworks have proliferated, indicating a move toward institution-driven regionalization compared to the earlier market-driven dynamics. Both positive and negative impacts are possible from these new regional institutions.
3. Capital Market Development in the Philippines_ Problems and Prospects.pdfMarjorieSalvadorVall
This document summarizes capital market development in the Philippines. It notes that while the Philippines was once a promising developing country in Asia after WWII, its capital market has developed slowly. The importance of the financial sector to the economy has remained largely unchanged from 1980 to 2001. Commercial banks have increased in importance while non-bank financial institutions have decreased. Pension funds and insurance companies are the most important non-bank financial institutions. The document focuses on pension funds, the equities market, and fixed-income securities market as key components of the capital market that could help economic growth if developed further.
The Asian Financial Crisis began in July 1997 when Thailand floated its currency, the baht, causing its value to drop and triggering a series of currency devaluations and economic turmoil across Asia. The crisis most severely impacted Indonesia, South Korea, and Thailand as their currencies collapsed, stock markets plunged, real estate prices fell, and numerous companies went bankrupt. The International Monetary Fund orchestrated large bailout packages for the affected countries and imposed structural adjustment programs that required high interest rates, spending cuts, and market liberalization to stabilize currencies and restore investor confidence. While most countries recovered relatively quickly, the crisis had long-lasting economic and political impacts on the region.
The document discusses China's outward foreign direct investment flows and stocks from 2003 to 2009. Some key points:
- China's outward FDI flows increased from $2.86 billion in 2003 to $56.53 billion in 2009.
- The top destinations of Chinese FDI by 2009 were Hong Kong, Macau and Taiwan, receiving $36.06 billion that year. Other major recipients included ASEAN countries, Central America and the Caribbean.
- China's outward FDI stocks grew from $33.22 billion in 2003 to $245.76 billion in 2009. The largest stock was in Hong Kong, Macau and Taiwan at $166.34 billion in 2009.
This document provides an overview of the 1997 East Asian Financial Crisis, including:
1. It describes the economic growth and policies of East Asian countries prior to the crisis, known as the "East Asia Miracle".
2. It then outlines some of the key reasons for the crisis, including short-term foreign borrowing by banks and corporations and weaknesses in financial systems.
3. It examines the effects on specific countries, with Thailand, Indonesia, and South Korea being hit hardest by currency devaluations and economic downturns.
4. It also discusses the more moderate impact on countries like China and Singapore and the role of the IMF in providing bailout packages with strict reform conditions.
2000 jetro white paper on international trade and foreign direct investment b...Pim Piepers
The document is a white paper from JETRO (Japan External Trade Organization) on global trends in foreign direct investment (FDI) in 2000. Some key points:
- FDI flows surged in 1998, with outflows rising 36.6% to $648.9 billion and inflows up 38.7% to $643.9 billion, driven mainly by investment between the US and EU countries.
- The US was the largest source of FDI for the 8th year running in 1998, and also the largest recipient of FDI for the 6th consecutive year. Investment between the US and EU more than doubled from 1997 to 1998.
- Foreign investment in Japan also increased substantially in
The document discusses the prerequisites and consequences of establishing a common stock market in South Asia. It provides an overview of the economies, financial markets, and business environments of several South Asian countries. It examines topics like monetary and fiscal policies, stock market development, corporate governance, and competitiveness in areas relevant to establishing a linked stock exchange across borders in the region.
The document summarizes Ageas's investments and operations in Asia over the past decade. It notes that Ageas has invested a total of EUR 1.1 billion in Asia with an average duration of 5.5 years, including major investments in companies in China, Malaysia, Thailand, Hong Kong and India. It outlines the growth of Ageas's life and non-life insurance businesses across the region in terms of inflows, profits, funds under management and embedded value. The document concludes that Ageas has established a strong growth pillar in Asia with successful partnerships and remains well positioned for future opportunities through its focus on quality business and prudent risk management.
Ageas has been active in the Asian insurance markets since 2000, initially starting partnerships in Malaysia and China. Over the past decade, Ageas has expanded its presence to also include partnerships in Thailand, India, and Hong Kong. The Asian insurance markets have experienced substantial growth over this period, with increases in populations, GDP per capita, insurance premiums, and penetration rates across the major markets. Ageas' partnerships have also grown their market positions and performed solidly. Looking ahead, Ageas is well positioned to further strengthen its presence in the high-growth Asian markets by building on its foundations of solid partnerships and active management participation.
China starts economic reforms in 1978 under Deng Xiaoping, adopting more capitalist methods. This begins a period of rapid growth. India also begins reforms in 1991 after being inspired by China's success. Both countries see huge increases in GDP and population over the following decades as they develop economically. DNB establishes offices in Hong Kong in 1995 and Chennai, India in 2000 to research opportunities in these emerging Asian markets.
Bubble Spotting - The East Asia Currency and Debt crisis of 1997Benjamin Van As
During the 1990s, various Eastern Asia economies grew at double-digit figures, and exports grew at well over 10% pa. in some cases.
Then the party ended with a bang as the Currency and Debt Bubble popped, the impact of which could be felt in markets around the world.
This presentation (which forms part of a larger series on Market Bubbles) gives a short overview on what happened.
This document provides data on domestic and foreign investment in Pakistan from 2000-2014. It shows that foreign direct investment peaked at $3.67 billion in 2007 but declined to $0.58 billion in 2013, while domestic investment remained relatively stable between $14-19 billion per year over the same period. The document also includes data on GDP growth by economic sector from 2007-2015, with agriculture and livestock seeing overall growth but variability between years. Country-wise FDI inflows are given for several countries from 2007-2016. In conclusion, the author examines the relationship between domestic saving and investment in Pakistan and determines that capital mobility, rather than domestic saving, is a determinant of domestic investment.
This presentation provides an overview of the Asian Financial Crisis of the late 1990s. It discusses the crisis timeline, including Thailand allowing the baht to float in July 1997 which triggered further currency devaluations across Asia. The document outlines weaknesses in Asian economies that were exposed by the crisis, such as weak banking regulation and reliance on short-term capital flows. It also discusses the impact on various countries and regions, including rising interest rates, falling stock prices, and currency depreciation. The presentation concludes with 14 case study questions analyzing different aspects of the crisis.
The Asian Financial Crisis began in July 1997 and severely impacted economies across Asia, including Thailand, Indonesia, South Korea, and other countries. The crisis was triggered by Thailand deciding to float its currency, the baht, causing its value to collapse and spread contagion to other economies. Weak financial systems, liberalization of capital flows, overreliance on foreign capital, and inconsistent economic policies contributed to the crisis by exposing vulnerabilities and causing investors to lose confidence. The crisis represented a failure of many parties to identify risks and prevent the downturn.
This document provides an overview and guide to various US and global market insights and investing principles. It includes sections on the US and global economies, equities, fixed income, and alternatives. Some of the topics covered include S&P 500 valuation measures, sources of corporate earnings growth, bond yields and returns, and diversification. Charts and data are provided on various economic, market and investing metrics as of September 30, 2018. The document is authored by J.P. Morgan Asset Management's Global Market Insights Strategy Team.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Industrial Policy and Upgrading for sustained growth: The Asian ExperienceEconomic Research Forum
Keun Lee - Seoul National University
ERF 24th Annual Conference
The New Normal in the Global Economy: Challenges & Prospects for MENA
July 8-10, 2018
Cairo, Egypt
What Is South East Asian Currency CrisisPujil Khanna
The document summarizes the 1997 Asian Financial Crisis that impacted countries in Southeast Asia. It discusses some of the key causes of the crisis, including excessive foreign borrowing by Thailand, Indonesia, and South Korea which led to large current account deficits. When the US raised interest rates, it caused investors to pull money out of Southeast Asia rapidly, severely depreciating currencies and causing economic turmoil and recessions across the region. The IMF intervened to provide loans and encourage reforms to stabilize economies and currencies.
Presentation talks about the crisis faced by Korea,Indonesia,Malaysia.
Some of the important reasons being BOP Deficits and Inefficient Financial Systems, drop in GDP and increase in Unemployment rate etc.
This document summarizes the shift from market-driven to institution-driven regionalization in East Asia. It finds that intra-regional trade and foreign direct investment has greatly increased, particularly in machinery and electronics. Production networks across East Asia have developed through offshoring and outsourcing. Recently, regional trade agreements and monetary cooperation frameworks have proliferated, indicating a move toward institution-driven regionalization compared to the earlier market-driven dynamics. Both positive and negative impacts are possible from these new regional institutions.
3. Capital Market Development in the Philippines_ Problems and Prospects.pdfMarjorieSalvadorVall
This document summarizes capital market development in the Philippines. It notes that while the Philippines was once a promising developing country in Asia after WWII, its capital market has developed slowly. The importance of the financial sector to the economy has remained largely unchanged from 1980 to 2001. Commercial banks have increased in importance while non-bank financial institutions have decreased. Pension funds and insurance companies are the most important non-bank financial institutions. The document focuses on pension funds, the equities market, and fixed-income securities market as key components of the capital market that could help economic growth if developed further.
The Asian Financial Crisis began in July 1997 when Thailand floated its currency, the baht, causing its value to drop and triggering a series of currency devaluations and economic turmoil across Asia. The crisis most severely impacted Indonesia, South Korea, and Thailand as their currencies collapsed, stock markets plunged, real estate prices fell, and numerous companies went bankrupt. The International Monetary Fund orchestrated large bailout packages for the affected countries and imposed structural adjustment programs that required high interest rates, spending cuts, and market liberalization to stabilize currencies and restore investor confidence. While most countries recovered relatively quickly, the crisis had long-lasting economic and political impacts on the region.
The document discusses China's outward foreign direct investment flows and stocks from 2003 to 2009. Some key points:
- China's outward FDI flows increased from $2.86 billion in 2003 to $56.53 billion in 2009.
- The top destinations of Chinese FDI by 2009 were Hong Kong, Macau and Taiwan, receiving $36.06 billion that year. Other major recipients included ASEAN countries, Central America and the Caribbean.
- China's outward FDI stocks grew from $33.22 billion in 2003 to $245.76 billion in 2009. The largest stock was in Hong Kong, Macau and Taiwan at $166.34 billion in 2009.
This document provides an overview of the 1997 East Asian Financial Crisis, including:
1. It describes the economic growth and policies of East Asian countries prior to the crisis, known as the "East Asia Miracle".
2. It then outlines some of the key reasons for the crisis, including short-term foreign borrowing by banks and corporations and weaknesses in financial systems.
3. It examines the effects on specific countries, with Thailand, Indonesia, and South Korea being hit hardest by currency devaluations and economic downturns.
4. It also discusses the more moderate impact on countries like China and Singapore and the role of the IMF in providing bailout packages with strict reform conditions.
2000 jetro white paper on international trade and foreign direct investment b...Pim Piepers
The document is a white paper from JETRO (Japan External Trade Organization) on global trends in foreign direct investment (FDI) in 2000. Some key points:
- FDI flows surged in 1998, with outflows rising 36.6% to $648.9 billion and inflows up 38.7% to $643.9 billion, driven mainly by investment between the US and EU countries.
- The US was the largest source of FDI for the 8th year running in 1998, and also the largest recipient of FDI for the 6th consecutive year. Investment between the US and EU more than doubled from 1997 to 1998.
- Foreign investment in Japan also increased substantially in
The document discusses the prerequisites and consequences of establishing a common stock market in South Asia. It provides an overview of the economies, financial markets, and business environments of several South Asian countries. It examines topics like monetary and fiscal policies, stock market development, corporate governance, and competitiveness in areas relevant to establishing a linked stock exchange across borders in the region.
The document summarizes Ageas's investments and operations in Asia over the past decade. It notes that Ageas has invested a total of EUR 1.1 billion in Asia with an average duration of 5.5 years, including major investments in companies in China, Malaysia, Thailand, Hong Kong and India. It outlines the growth of Ageas's life and non-life insurance businesses across the region in terms of inflows, profits, funds under management and embedded value. The document concludes that Ageas has established a strong growth pillar in Asia with successful partnerships and remains well positioned for future opportunities through its focus on quality business and prudent risk management.
Ageas has been active in the Asian insurance markets since 2000, initially starting partnerships in Malaysia and China. Over the past decade, Ageas has expanded its presence to also include partnerships in Thailand, India, and Hong Kong. The Asian insurance markets have experienced substantial growth over this period, with increases in populations, GDP per capita, insurance premiums, and penetration rates across the major markets. Ageas' partnerships have also grown their market positions and performed solidly. Looking ahead, Ageas is well positioned to further strengthen its presence in the high-growth Asian markets by building on its foundations of solid partnerships and active management participation.
China starts economic reforms in 1978 under Deng Xiaoping, adopting more capitalist methods. This begins a period of rapid growth. India also begins reforms in 1991 after being inspired by China's success. Both countries see huge increases in GDP and population over the following decades as they develop economically. DNB establishes offices in Hong Kong in 1995 and Chennai, India in 2000 to research opportunities in these emerging Asian markets.
Bubble Spotting - The East Asia Currency and Debt crisis of 1997Benjamin Van As
During the 1990s, various Eastern Asia economies grew at double-digit figures, and exports grew at well over 10% pa. in some cases.
Then the party ended with a bang as the Currency and Debt Bubble popped, the impact of which could be felt in markets around the world.
This presentation (which forms part of a larger series on Market Bubbles) gives a short overview on what happened.
This document provides data on domestic and foreign investment in Pakistan from 2000-2014. It shows that foreign direct investment peaked at $3.67 billion in 2007 but declined to $0.58 billion in 2013, while domestic investment remained relatively stable between $14-19 billion per year over the same period. The document also includes data on GDP growth by economic sector from 2007-2015, with agriculture and livestock seeing overall growth but variability between years. Country-wise FDI inflows are given for several countries from 2007-2016. In conclusion, the author examines the relationship between domestic saving and investment in Pakistan and determines that capital mobility, rather than domestic saving, is a determinant of domestic investment.
This presentation provides an overview of the Asian Financial Crisis of the late 1990s. It discusses the crisis timeline, including Thailand allowing the baht to float in July 1997 which triggered further currency devaluations across Asia. The document outlines weaknesses in Asian economies that were exposed by the crisis, such as weak banking regulation and reliance on short-term capital flows. It also discusses the impact on various countries and regions, including rising interest rates, falling stock prices, and currency depreciation. The presentation concludes with 14 case study questions analyzing different aspects of the crisis.
The Asian Financial Crisis began in July 1997 and severely impacted economies across Asia, including Thailand, Indonesia, South Korea, and other countries. The crisis was triggered by Thailand deciding to float its currency, the baht, causing its value to collapse and spread contagion to other economies. Weak financial systems, liberalization of capital flows, overreliance on foreign capital, and inconsistent economic policies contributed to the crisis by exposing vulnerabilities and causing investors to lose confidence. The crisis represented a failure of many parties to identify risks and prevent the downturn.
This document provides an overview and guide to various US and global market insights and investing principles. It includes sections on the US and global economies, equities, fixed income, and alternatives. Some of the topics covered include S&P 500 valuation measures, sources of corporate earnings growth, bond yields and returns, and diversification. Charts and data are provided on various economic, market and investing metrics as of September 30, 2018. The document is authored by J.P. Morgan Asset Management's Global Market Insights Strategy Team.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Explore the world of investments with an in-depth comparison of the stock market and real estate. Understand their fundamentals, risks, returns, and diversification strategies to make informed financial decisions that align with your goals.
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
Newman Leech's success in the real estate industry is based on key lessons and principles, offering practical advice for new investors and serving as a blueprint for building a successful career.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
South Dakota State University degree offer diploma Transcriptynfqplhm
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Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
2. Presentation Outline
Discuss briefly the behavior of the
Foreign Exchange (FX) of Southeast
Asian Countries.
Assess different factors that lead to
the currency crisis.
Opportunities and Implications for
U.S. companies
3. Foreign Exchange Rates
Since June 1997, FX rates in many
Southeast Asian countries have experienced
a substantial decline.
These countries include the Philippines,
Malaysia, Thailand, Indonesia, and Korea.
Many of these countries linked their
exchange rates to the U.S. dollar before the
currency crisis.
4. Change in FX rates
(6/30/1998)
FX:1 $US FX: 1 $US %
6/30/98 6/30/97 change
Chinese yuan 8.281 8.289 +0.09
HK dollar 7.745 7.747 +0.03
Indonesia rupiah 14568.89 1760 -87.92
Japanese yen 138.31 114.61 -17.58
Malaysian ringgit 4.1 1.827 -55.44
Korean won 1370 641.4 -53.18
Philippine peso 41.5 19.08 -54.02
Thai baht 42.16 17.9 -57.54
5. Immediate Results of Crisis
In addition to currency devaluation:
Collapse of their Stock Markets
(all Southeast countries);
Call for an IMF rescue plan in the
Philippines, Thailand, Indonesia and
Korea;
Bankruptcy and financial reforms
(all Southeast countries).
6. What Happens to Capital
Flows?
1994 1995 1996 1997*
Private flows, net 40.5 77.4 93.0 -12.1
Equity Investment 12.2 15.5 19.1 -4.5
Private Creditors 28.2 61.8 74.0 -7.6
Source: Institute of International Finance, Inc., “Capital Flows to
Emerging Economies,” January 1998.
7. Reasons for the Currency
Crisis
Decline in Export Earnings
Excessive and Risky Investment
Current Account Deficit
Overvalued Currency
Underdevelopment of credit market
Property market bubble
9. Excessive and Risky Investment
Incremental Capital-Output (ICOR) Ratios
Country 1987-1992 1993-1996
China 3.1 2.9
Hong Kong 3.7 6.1
Indonesia 3.8 4.9
Korea 4.0 4.9
Malaysia 3.7 4.8
Philippines 6.0 5.5
Singapore 3.6 4.0
Taiwan 2.4 3.9
Thailand 3.4 5.1
Source: Corsetti and Pesenti (1998)
10. Current Account Deficit
(% of GDP)
1990-1995 1996
Asian Country: (average)
China 0.9 0.9
Hong Kong 3.3 -1.2
Korea -1.2 -4.8
Singapore 12.7 15.5
Taiwan 4.0 4.0
Indonesia -2.5 -3.7
Malaysia -5.9 -4.9
Philippines -3.8 -4.7
Thailand -6.7 -7.9
11. Current Account (continued)
Latin America 1990-95 1996
Argentina -1.6 -1.4
Brazil -0.6 -3.3
Chile -2.6 -5.4
Colombia -1.7 -5.5
Mexico -5.1 -0.6
Other countries:
Israel -3.9 -7.4
Africa (average) -11.1 -7.8
Hungary -4.0 -3.7
Source: Bank for International Settlements
12. Overvalued Currency
Country 1990 1991 1992 1993 1994 1995 1996
Hong Kong 99.7 103.9 108.5 115.9 114.5 116. 125.5
Indonesia 97.4 99.6 100.8 103.8 101.0 100.5 105.1
Korea 97.1 91.5 87.8 85.2 84.7 87.8 86.8
Malaysia 97.0 96.9 109.7 111.0 107.1 107.0 111.9
Philippines 92.3 103.1 107.1 97.4 111.6 109.5 116.0
Singapore 101.2 105.7 106.0 108.6 111.9 112.7 117.9
Thailand 102.2 99.0 99.7 101.9 98.3 101.7 107.6
Note: The base figure (100) is the average for the year 1990
Source: J.P. Morgan
13. Japanese Model
Limit bond market to support long-term
growth.
Keep savings in a small number of powerful
banks which are not properly regulated .
Loans are made to favored customers and
businesses with national ambitions, such as
textiles, steel, shipbuilding, electronics, and
automobiles (such as Japan, Thailand,
Korea, and Indonesia).
14. Size of Banking sector
1995 % of GDP
Bond Bank
Market Lending
U.S. 110% 54%
Japan 74 152
Malaysian 56 100
Philippine 39 54
Thailand 10 100
Indonesia 6 57
15. Bank Credit to Private Sector
Annual Rate of Expansion % of GDP
Country 1990-1997 1997
China 13 97
Hong Kong 8 157
Indonesia 18 57
Japan 1.5 111
Korea 12 64
Malaysia 16 95
Philippines 18 52
Singapore 12 97
Thailand 18 105
United States 0.5 65
16. June 1996 June 1997
Indonesia 1.724 1.704
Korea 1.623 2.073
Malaysia 0.252 0.612
Philippines 0.405 0.848
Thailand 0.992 1.453
Other countries
Argentina 1.325 1.210
Brazil 0.702 0.792
Mexico 1.721 1.187
Pakistan 0.740 2.440
South Africa 4.050 3.124
Zimbabwe 1.319 1.635
Short-Term Debt to Reserves
17. Non-Performing Loans
(% of Total Loans)
1990 1994 1995 1996
Indonesia 4.5 12.0 10.4 8.8
Korea 2.1 1.0 0.9 0.8
Malaysia 20.4 8.1 5.5 3.9
Thailand 9.7 7.5 7.7 N/A
Mexico 2.3 10.5 14.4 12.5
Argentina 16.0 8.6 12.3 9.4
Source: Bank for International Settlements.
18. Property Market Bubble
Sale Price: Capital Value
Period Bangkok (000B/m. sq.) Jakarta ($/m. sq.)
Q4, ‘90 66.0 3019
Q4, ‘91 67.0 2788
Q4, ‘92 60.0 2482
Q4, ‘93 59.5 2327
Q4, ‘94 60.5 2358
Q4, ‘95 60.5 2179
Q4, ‘96 60.4 2250
Q2, ‘97 43.0 2267
Source: Data Stream and Jones Lang Wootten.
19. Central Business District Office
Vacancy Rates
1997
Bangkok 15.0%
Hong Kong 6.0%
Kakarta 10.0%
Kuala Lumpur 3.0%
Manila 1.0%
Singapore 8.0%
Shanghai 30.0%
Source: JP Morgan “Asian Financial Markets,”
January 1998.
20. What Really Causes A Crisis?
Corruption?
Korea, Indonesia, Thailand -corruption
Italy and India have corruption, but no
crisis
Bank Transparency
inadequate regulatory framework
irrational lenders?
21. Fundamental Factors-GDP growth
(%)
1993 1994 1995 1996
Indonesia 6.5 7.54 8.22 7.98
Korea 5.75 8.58 8.92 7.13
Malaysia 8.41 9.24 9.46 8.20
Philippines 2.12 4.39 4.76 5.67
Thailand 8.27 8.85 8.68 6.66
Source: Corsetti, Pesenti and Roubini (1998).
22. Inflation Rate
1993 1994 1995 1996
Indonesia 9.60 8.53 9.43 8.03
Korea 4.82 6.24 4.49 4.96
Malaysia 3.57 3.71 5.28 3.56
Philippines 7.58 9.06 8.11 8.41
Thailand 3.36 5.19 5.69 5.85
Source: Corsetti, Pesenti and Roubini (1998).
24. Human Development Indicators
Country Life-Expectancy Literacy Rate Average Income of
(years) (%) Poorest 20%
in ‘85 US$
1970 1995 1970 1995 1970 1995
Indonesia 48 64 54 84 392 908
Korea 60 72 88 98 303 2071
Malaysia 62 72 60 85 431 1070
Philippines 57 66 83 95 218 435
Thailand 58 69 79 94 361 726
Source: Radelet and Sachs (1998).
25. Fixed Exchange Rate System
FX rates more efficient.
Imposes impediments in the FX
system.
Government guarantees investors
potential upside return if FX
devalues.
26. Currency Model of Attack
by Speculators
Due to the “fixed” exchange arrangement in
many Southeast Asian countries, speculators
start with local borrowings (i.e., borrowing
from local banks).
They then sell the local currencies, convert
into US dollars, and sell forward contracts.
They realize a profit if the currencies
devalue, because their US holdings can be
exchanged for more local currencies to pay
off loans.
27. Defenses by Governments
Buy up sales transactions - FX reserves can
be exhausted quickly.
Jack up the interest rate to deter
speculative borrowings, implying high cost
for business that leads to:
bankruptcies
discouraging real investment
collapse of stock markets
Penalize banks who lend money to
speculators.
28. The Impact of Crisis on China
More imports from Korea due to
lowered prices, e.g., products
imported from Korea have increased,
including steel (32.4%), petro-
chemicals (11.8%), and textiles (9%).
China’s exports slow down.
Economic growth slows down.
29. China’s Strategy
Under pressure to devalue its currency.
However, such a decision is political, not
economic.
Could hurt its credibility as an Asian
leader.
Devaluation will hurt Hong Kong, a
place to raise external funds via initial
public offerings (IPO) for its state-
owned enterprises.
30. China’s Strategy (continued)
Ease Export Credits by encouraging
banks to make loans to export-
oriented companies.
Relax export licenses and give tax
rebates:
Ministry of Foreign Trade and
Economic Cooperation issues more
export licenses for base metals.
Exporters will receive full 17% value-
added tax.
31. Implications and Strategies
Lowered currency value implies
products are cheaper to buy --
Merger Activities in Asian countries
International trade implications
Financial reforms (bond market
development and banks)
Corporate Strategies
32. Corporate Hedging Strategies
Increased use of hedging
instruments, given the volatile FX
markets (use of forward, swaps and
other derivative instruments).
As a long-term strategy, U.S. firms
should pay closer attention in
managing their economic exposure,
e.g., Avon’s use of a balance sheet
hedge in 1997.