How did the Asian countries avoid the debt crisis?

Abstract

Economic stability, sound macroeconomic policies, and appropriate microeconomic incentives hold down a country's external debt burden. Most of the Asian countries pursued prudent macroeconomic policies, paid attention to price stability, and minimized price distortions. These countries avoided the overvalued exchange rates and uncompetitive interest rates that caused massive capital flight from Latin American and some African countries. The author contrasts Asian country debt crisis behavior with that of 12 highly indebted Latin American and African countries.Banks&Banking Reform,Achieving Shared Growth,Economic Theory&Research,Environmental Economics&Policies,Macroeconomic Management