Midterm 1 Flashcards
What is the capital of Indonesia?
Jakarta
What is the currency of Indonesia?
Rupiah
What is the capital of Malaysia?
Kuala Lumpur
What is the currency of Malaysia
Ringgit
What are the four tigers?
Hong Kong, Taiwan, South Korea, Singapore
What are the Asean-4 countries?
Malaysia, Thailand, Indonesia, Philippines
Which economy has fixed exchange rate?
Hong Kong
Which country has experienced devising hyperinflation over the past 60 years?
Indonesia due to political instability, economic mismanagement, economic isolation
What is the two corner solution?
Countries choosing either a fixed exchange rate or a fully flexible exchange rate but never both
What are the 6 strategies of development?
- Monetarist
- Open Economy
- Industrialization
- Green Revolution
- Redistribution
- Socialist
What does the Gini coefficient measure?
greater income inequality in a nation
What is the belt and road initiative (BRI)?
China’s infrastructure and investment project. aimed at building trade routes across Asia, Africa, Europe
What are the main motivations behind China’s BRI?
Enhancing trade, promoting regional connectivity, increasing China’s geopolitical influence
What are the three views on China’s BRI?
- Optimistic: It will help global development and create shared prosperity.
- Strategic: It is China’s way to gain influence and challenge U.S. global dominance.
- Skeptical: BRI may be economically unsustainable due to heavy debt burdens on participating countries.
What are the eight High-Performing Asian Economies (HPAEs)?
Japan, South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia
What are the long-term issues for the future development of Northeast Asia?
Aging populations, structural reforms, regional integration, maintaining economic growth despite demographic changes
What are the key features of the Asian Development Model?
High savings rates, export promotion, human capital development, government intervention in industrial policies.
What are the three regimes in the Impossible Trinity?
Fixed exchange rate, free capital movement, independent monetary policy
Which country/economy had the highest corporate ownership concentration before the Asian Financial Crisis?
Indonesia
Which country/economy is ranked as the most attractive FDI destination in the world?
China
Which country/economy had the highest ratio of short-term foreign debt to reserves right before the Asian Financial Crisis?
Thailand
Which country/economy had the highest corporate leverage (debt-equity ratios) before the Asian Financial Crisis?
South Korea
Which country/economy has the highest saving rates?
China
What were the six key components of the IMF rescue packages that exacerbated the crisis?
1.Fiscal austerity
2.interest rate hikes
3. currency devaluation
4. structural reforms
5.privatization
6.deregulation
Which countries received IMF bailouts during the Asian Financial Crisis?
Thailand, Indonesia, South Korea
What were the “Sick-5” countries most affected by the Asian Financial Crisis?
Thailand, Indonesia, South Korea, Malaysia, Philippines
What were the five main causes of the Asian Financial Crisis?
1.Over-leveraging
2.short-term foreign debt
3.fixed exchange rates
4.weak corporate governance
5. speculative attacks on currencies.
How did the “Sick-5” resolve the Impossible Trinity problem after the crisis?
They adopted flexible exchange rates and liberalized capital markets.
Which countries/economies were least affected by the Asian Financial Crisis?
Taiwan and Singapore
When and where did the Asian Financial Crisis officially start?
July 1997 in Thailand
What is the double mismatch problem?
Currency mismatch: Borrowing in foreign currencies Maturity mismatch: using short-term loans for long-term projects
