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ASIA CRISIS POSTMORTEM: WHERE DID THE MONEY GO AND DID THE UNITED STATES BENEFIT?(Statistical Data Included)

From: Federal Reserve Bank of New York Economic PolicyReview  |  Date: 9/1/2000  |  Author: van Wincoop, Eric; Yi, Kei-Mu

* In the crisis years of 1997-98, the hardest-hit Asian countries experienced net capital outflows of more than $80 billion.

* Almost all of the outflows originated as banking flows. The majority went first to offshore center banks and then to banks in Europe.

* Much of the capital eventually reached the United states, but in the form of foreign direct investment or portfolio investment rather than banking flows.

* An equilibrium analysis of supply- and demand-side ...

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