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in credit contraction. Moreover, currency depreciation further adversely affects the balance-sheets of corporations by inflating the value of liabilities in domestic currency terms, thereby precipitating a currency and banking crisis. The Korean crisis also illustrates the fact that, although the alliance between the government, the chaebols and the banks had been in place since the 1960s, it was no longer compatible with Korea’s integration into the global financial market. In sum, the Korean crisis reflected a fundamental structural misallocation of resources to
of investing in new areas of commerce. It was one of the early backers of retail firms such as Sears, Woolworth's and Macy's, and then the entertainment industry, including 20th Century Fox and Paramount Pictures. The company then turned to oil, financing the TransCanada pipeline, and oil servicing companies such as Halliburton. When electronic and computer technology became drivers of the economic expansion of the 1950s, there was Lehman, still seeking investment opportunities. In the 1960s, Lehman Brothers developed its capital market trading capacity, especially
several big software projects underwritten by the US government and, later, by large corporations. The SAGE and the SABRE systems were products developed in this period. Nevertheless, in the 1960s the demand for software came from a few large firms, and the conventional wisdom was that software could not, by itself, make money. The decade 1959–69 saw the emergence of the first two software product companies. Mark IV written by Informatics was one of the most successful software products. The other software product came about due to a failed contract. ADR produced the
growth not only reduced poverty levels from over 57 per cent in the mid-1960s to 30 per cent in the mid-1970s and to about 13 per cent by 1996, but basic social indicators in terms of life expectancy, infant mortality, literacy and human resource development all also showed significant improvements (World Bank 1997, 1–4). The surge in growth also transformed the composition of production as Thailand moved from a predominantly agrarian to an industrialized economy. From 1980 to 1996, agriculture’s share in GDP fell from 23 per cent to 11 per cent, while manufacturing
, Furman and Stiglitz (1998) found that the Indonesian crisis was the least predictable out of a sample of 34 potentially troubled economies. Indeed, for a country that was dismissed during the Sukarno era (1949–65) as a “chronic dropout” and one that “must surely be accounted the number one failure among the major underdeveloped countries,” Indonesia’s economic development in the post-Sukarno era was nothing short of miraculous.2 In the first half of the 1960s, foreignexchange reserves shrank to zero (in 1965), inflation skyrocketed to over 600 per cent annually
-industrializing economies of Southeast Asia (Indonesia, Malaysia and Thailand) grew more rapidly than any other group of economies in the world, averaging 7 per cent per year growth rates in real terms since the mid-1970s, and over 9 per cent per year since the late 1980s.54 This meant that the fast-growing Asian economies were doubling their real GDP approximately every 7 years during the 1960s and 1970s, and roughly every 7 to 10 years during the 1980s (World Bank 1993). All these economies also experienced dramatic increases in real per capita incomes. In South Korea and Singapore
using the economists’ ‘market failure’ language. The standard categories of market failure – public goods, externalities, monopoly problems, information impactedness, and (in some treatments) income distribution problems – serve to structure and constrain much of the policy discourse. Indeed since the 1960s, when this theory became solidly incorporated in mainline economics, almost every new president’s Council of Economic Advisors has walked through basically this list in its maiden annual report to Congress and the American people, as part of its articulation of the
per ounce. The system collapsed when other countries no longer believed that the United States could keep its promise to exchange US dollars for gold at the official price. In the 1960s, US reserves of gold steadily declined, while the amount of US liabilities to foreigners increased. That is, there were more and more US dollars in circulation for every ounce of gold, putting more strain on the capacity of the United States to honor the agreement. Other countries that had accumulated US dollars became afraid that the dollar would be devalued in terms of gold, and