Credit market imperfections have been blamed for the depth and persistence of the Great Depression in the USA. Could similar mechanisms have played a role in ending the East Asian miracle? After a brief account of the nature of the recent crises, we use a model of highly levered creditconstrained firms due to Kiyotaki and Moore (1997) to explore this question. As applied to land-holding property companies, it predicts greatly amplified responses to financial shocks like the ending of the land price bubble or the fall of the exchange rate. The initial fall in asset values is followed by the ‘knockon’ effects of the scramble for liquidity as companies sell land to satisfy their collateral requirements causing land prices to fall further. This could lead to financial collapse where like falling dominoes prudent firms are brought down by imprudent firms. Key to avoiding collapse is the nature of financial stabilisation policy; in a crisis, temporary financing can prevent illiquidity becoming insolvency and launching ‘lifeboats’ can do the same. But the vulnerability of financial systems like those in East Asia to short-term foreign currency exposure suggests that preventive measures are also required.
{"title":"The crisis.","authors":"J. J. Ravenel","doi":"10.2307/j.ctvbcd184.24","DOIUrl":"https://doi.org/10.2307/j.ctvbcd184.24","url":null,"abstract":"Credit market imperfections have been blamed for the depth and persistence of the Great Depression in the USA. Could similar mechanisms have played a role in ending the East Asian miracle? After a brief account of the nature of the recent crises, we use a model of highly levered creditconstrained firms due to Kiyotaki and Moore (1997) to explore this question. As applied to land-holding property companies, it predicts greatly amplified responses to financial shocks like the ending of the land price bubble or the fall of the exchange rate. The initial fall in asset values is followed by the ‘knockon’ effects of the scramble for liquidity as companies sell land to satisfy their collateral requirements causing land prices to fall further. This could lead to financial collapse where like falling dominoes prudent firms are brought down by imprudent firms. Key to avoiding collapse is the nature of financial stabilisation policy; in a crisis, temporary financing can prevent illiquidity becoming insolvency and launching ‘lifeboats’ can do the same. But the vulnerability of financial systems like those in East Asia to short-term foreign currency exposure suggests that preventive measures are also required.","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"41 1","pages":"79-81"},"PeriodicalIF":0.0,"publicationDate":"2019-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91086871","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Nasal tip surgery.","authors":"S H SANDERS","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1960 ","pages":"147-51"},"PeriodicalIF":0.0,"publicationDate":"1961-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23423659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Ureterocutaneous anastomosis. II. A new urine collection apparatus to prevent stricture.","authors":"J F GLENN, E P ALYEA","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1959 ","pages":"40-2"},"PeriodicalIF":0.0,"publicationDate":"1960-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23440841","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The future of the practice of medicine.","authors":"L M ORR","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1959 ","pages":"20-3"},"PeriodicalIF":0.0,"publicationDate":"1960-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23443570","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Ureterocutaneous anastomosis. I. Experimental use of a surgical splint to prevent stricture.","authors":"J F GLENN, E P ALYEA","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1959 ","pages":"36-9"},"PeriodicalIF":0.0,"publicationDate":"1960-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23440839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Audiological manifestations of lesions in the auditory nervous system.","authors":"J JERGER","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1960 ","pages":"292-300"},"PeriodicalIF":0.0,"publicationDate":"1960-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23420959","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Lymphosarcoma of tonsil. Discussion and report of case with recovery.","authors":"F JOHNSON","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1960 ","pages":"292-300"},"PeriodicalIF":0.0,"publicationDate":"1960-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23420960","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The histochemistry of the enzymes of oxygen metabolism in the inner ear.","authors":"K H VOSTEEN","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1960 ","pages":"230-41"},"PeriodicalIF":0.0,"publicationDate":"1960-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23422902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"[Reversible inactivation of prostatic acid phosphatase. Action Closure of perforation of the tympanic membrance vein grafts. A preliminalry report of twenty cases].","authors":"H G TABB","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1960 ","pages":"191-207"},"PeriodicalIF":0.0,"publicationDate":"1960-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23423282","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Nasal tip surgery.","authors":"S H SANDERS","doi":"","DOIUrl":"","url":null,"abstract":"","PeriodicalId":86283,"journal":{"name":"Transactions. American Urological Association. Southeastern Section","volume":"1960 ","pages":"147-51"},"PeriodicalIF":0.0,"publicationDate":"1960-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"23420951","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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