The Future of International Financial System and Its Implications for Korea

The Future of International Financial System and Its Implications for Korea

- Speaker: Morris Goldstein, Senior Fellow, Institute for International Economics

- Date : March 28, 2000.

"At the heart of the Asian crisis was a large build-up of short-term, un-hedged foreign currency debt by banks and their corporate customers. The trouble with a debt strategy that condones large liquidity, currency mismatches and high leverage is that any shock that significantly reduces cash flow or net worth - leading creditors to lose confidence - can upset the whole apple cart...”