The Korean Crisis What Did We Know and When Did We Know It? What Stress Tests of the Corporate Sector Reveal

Author/creator Karasulu, Meral Author
Other author Jones, Matthew T. Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description37 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation The objective of this paper is to provide a retrospective assessment of our ability to have predicted the impact of the 1997 crisis on the Korean corporate sector. We perform some simple stress tests on the aggregate balance sheets and income statements of the corporate sector to determine what could have been foreseen before the onset of the crisis. Our results show that data available in mid-1997 clearly showed that the corporate sector was very sensitive to various shocks, particularly interest rate shocks. Had stress tests been performed at the time, they would have revealed that the corporate sector was highly vulnerable to adverse economic developments. Our findings suggest that close surveillance of corporate sector balance sheets can play a useful role in understanding potential financial vulnerabilities.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451909081
ISBN145190908X (E-Book) Active Record
Stock number00013468

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