Title: Financial liberalization and the capital account
Description: Thailand's economic crisis in 1997 was fundamentally one of private sector debt, rooted in private behavior that affected the magnitude and composition of investment and how it was financed.  Thailand's crisis provides further evidence that financial liberalization must be carefully managed because, by increasing competition, it lowers the franchise value of existing financial institutions and creates incentives for unsound banking practices.
Subjects: Banks and banking, Debt, Financial crises, Investments, Monetary policy
Places: Thailand