Questioning the explanations of the asian crisis

The main explanations of the Asian crisis are couched in terms of serious policy errors committed by national governments. The purpose of this paper is to explain the dynamics of these errors. The Asian crisis has already triggered an avalanche of works on economic crisis. Sophisticated models have been developed to explain the high growth, high savings and high risks economies of East Asia (see Bai and Wang, 1999). It has been widely discussed whether or not these elements turned on efficiency (Krugman, 1994; Young, 1995). The sharp downturn of some these economies point to the possibility that they were exposed to high risks. The quality of governance has also been highlighted in this context.