The first theoretical analysis of the Asian financial crisis, perhaps the single most important economic event of the 1990s.

List of figures; List of tables; Preface; Acknowledgements; Introduction Pierre-Richard Agénor, Marcus Miller, David Vines and Axel A. Weber; Part I. General Accounts: 1. The role of macroeconomic and financial sector linkages in East Asia's financial crisis Pedro Alba, Amar Bhattacharya, Stijn Claessens, Swati Ghosh and Leonardo Hernandez; Discussion Sule Ozler; 2. The Asian crisis: lessons from the collapse of financial systems, exchange rates and macroeconomic policy Jenny Corbett and David Vines; Appendix: Thailand, a stylised chronology; Discussion Christopher Bliss; 3. Are capital inflows to developing countries a vote for or against economic policy reforms? Michael P. Dooley; Discussion Kenneth Kletzer; 4. The Asian crisis: an overview of the empirical evidence and policy debate Giancarlo Corsetti, Paolo Pesenti, and Nouriel Roubini; Appendix; Discussion Richard Portes; Part II. Theoretical Contributions: 5. Capital markets and the instability of open economies Philippe Aghion, Philippe Bacchetta and Abhijit Banerjee; Appendix 1: solving the model in the Leontief case; Appendix 2: why full financial liberalisation - unlike foreign direct investment - may destabilise an emerging market economy; Discussion Gianluca Femminis; 6. Volatility and the welfare costs of financial market integration Pierre-Richard Agénor and Joshua Aizenman; Discussion John Driffill; 7. A theory of the onset of currency attacks Stephen Morris and Hyun Song Shin; Discussion Jonathan P. Thomas; Part III. Contagion: 8. Contagion: monsoonal effects, spillovers and jumps between multiple equilibria Paul Masson; Discussion Axel A. Weber; 9. Contagion and trade: why are currency crises regional? Reuven Glick and Andrew K. Rose; Appendix; Discussion Mark P. Taylor; 10. Competition, complementarity and contagion in East Asia Ishac Diwan and Bernard Hoekman; Appendix; Discussion Jenny Corbett and David Vines; Part IV. Policy Responses: 11. Coping with crises: is there a 'silver bullet'? Amar Bhattacharya and Marcus Miller; 12. Must financial crises be this frequent and this painful? Joseph Stiglitz; 13. Round table discussion Richard Portes, Phillip Turner and Charles A. Goodhart; Index.