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The Quantity Theory Of Money And Financial Crises: Evidence From The 1997 Asian Crisis

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  • Bogdan Glăvan

    (Romanian American University)

Abstract

One of the most remarkable features of Asian Crisis is the fact that it has not been anticipated almost by anybody. This paper shows that using the prescription of the quantity theory of money, the crisis could have been forecasted well in advance. The root of Asian crisis is the monetary expansion initiated at the beginning of 1990s, which did not fueled a simple inflationary process, but generated an unsustainable expansion of production.

Suggested Citation

  • Bogdan Glăvan, 2008. "The Quantity Theory Of Money And Financial Crises: Evidence From The 1997 Asian Crisis," Romanian Economic Business Review, Romanian-American University, vol. 3(2), pages 103-108, June.
    • Handle: RePEc:rau:journl:v:3:y:2008:i:1:p:103-108
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