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Insulation Of India From The East Asian Crisis: An Analysis

Author

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  • PAMI DUA

    (Department of Economics, Delhi School of Economics, University of Delhi, Delhi 110007, India)

  • ARUNIMA SINHA

    (Department of Economics, Columbia University, New York, NY, USA)

Abstract

This paper investigates the effects of the East Asian crisis on the Indian economy and exchange rate movements. Despite the contagion effects that profoundly affected the other crisis-hit countries, the Indian economy and the rupee were found less affected. Reforms after the 1990–1991 crisis, control of capital flows, weak economic linkages with crisis-affected countries and stabilization policies that include intervention in the foreign exchange market and tightening of monetary policy are reasons for the insulation of the Indian economy from the crisis.

Suggested Citation

  • Pami Dua & Arunima Sinha, 2007. "Insulation Of India From The East Asian Crisis: An Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 52(03), pages 419-443.
    • Handle: RePEc:wsi:serxxx:v:52:y:2007:i:03:n:s0217590807002737
    DOI: 10.1142/S0217590807002737
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    References listed on IDEAS

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    1. Barry Eichengreen & Ricardo Hausmann & Ugo Panizza, 2007. "Currency Mismatches, Debt Intolerance, and the Original Sin: Why They Are Not the Same and Why It Matters," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pages 121-170, National Bureau of Economic Research, Inc.
    2. Pami Dua & Arunima Sinha, 2007. "East Asian Crisis and Currency Pressure: The Case of India," Working papers 158, Centre for Development Economics, Delhi School of Economics.
    3. Steven Radelet & Jeffrey Sachs, 1998. "The Onset of the East Asian Financial Crisis," NBER Working Papers 6680, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Garg, Reetika & Dua, Pami, 2014. "Foreign Portfolio Investment Flows to India: Determinants and Analysis," World Development, Elsevier, vol. 59(C), pages 16-28.
    2. Kariya, Ankitkumar, 2021. "Borrowing from government owned banks & firm's liquidation risk," Journal of Corporate Finance, Elsevier, vol. 69(C).
    3. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611, December.

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