Abstract:
The Asian financial crisis of 1997-98, and the financial crises in Russia and in Argentina, all happened in emerging-market economies. Little did we think that the next sovereign debt crisis would be in an advanced country, or even in Europe. These earlier crises taught us three crucial things. Understanding them is vital to dealing with the Greek crisis. First, the Asian financial crisis showed that the way for a country to recover from a financial crisis is to devalue its currency – to a very large extent– and then to go for export-led growth. We learned this from Thailand, Korea, Malaysia and Indonesia.
Citation:
Vines, D. (2010), 'Greece and the vulnerability of the European Monetary Union', East Asia Forum, https://doi.org/10.59425/eabc.1274047212