The Theory and Countermeasures of the Financial Crisis

Author: Zhang Deyuan
Publisher:
Publish Date: 2001-02-01
Features: This book refers to the countries or regions where financial crises first occur as the original countries or regions of the crisis, and the financial crises that develop in these countries or regions are called original financial crises. The main reason for the occurrence of original financial crises is that these countries or regions are in the weak links of regional economic integration. Due to errors in macroeconomic policies, the economic foundations of these countries are quite weak, specifically manifested as huge current account deficits, insufficient foreign exchange reserves, severe financial system vulnerabilities, and improper use of foreign capital, etc. This book refers to the financial crises that occur successively due to the impact of original financial crises as transmissive or imported financial crises. The main reason for the occurrence of transmissive financial crises is that there exist transmissive foundations and conditions within the countries or regions that are affected. This book further studies the reasons why China was able to avoid the impact of the Southeast Asian financial crisis and summarizes them into two aspects: First, during the occurrence and development of the crisis, China's macroeconomic indicators were sound, and the Chinese government adopted relatively cautious macroeconomic policies; Second, China was still protected to some extent by the traditional planned economy system.