Jan Kregel: The Continuing Risk of Derivatives

The video discusses the Asian financial crisis, focusing on the impact of capital account liberalization and the role of China in regional trade. It highlights the risks of foreign investment and derivatives, and the challenges faced by Asian economies like Thailand and Malaysia. The discussion also covers the use of offshore instruments and the importance of capital controls in mitigating financial crises.

How did the use of derivatives contribute to the exacerbation of the crisis?

What were the characteristics of the capital flows during the Asian financial crisis?

Explain the significance of the Bangkok Offshore Financial Centre in the context of the crisis.

What lessons can be learned from the Asian financial crisis regarding capital account convertibility?