Comparing the Performance of Macroeconomic and Financial Variables in the Two Financial Crises across Economies

The Asian economies have experienced two financial crises in 1998 and 2008. While the 1998 Asian financial crisis has been well documented, scholars are still soul-searching for the causes of the 2008 financial tsunami that spread from the United States to the entire world. It would be interesting and equally important to study and compare the economic performance of key Asian and non-Asian economies in the period before and after the two crises. The causes and consequences of the two crises will be different between Asian and non-Asian economies. Typically, the Asian financial crisis of 1998 hurts the Asian economies more, while the 2008 financial crisis would have a greater impact on non-Asian economies. This research projects uses key macroeconomic and financial data for a number of Asian and non-Asian economies to study the two financial rises, and see how their differences will impact of Asian economies. Policy recommendations can be suggested from the empirical analysis. The comparison can have new insights to the study of financial crisis and the monetary policy practised by the US and other key economies. Since financial crisis is ultimately a monetary phenomenon, the empirical study will lead the PI to examine the monetary solution to financial crisis.