Incidence of Banking Crises

1
Incidence of Banking Crises
1980s 43 1990s 66
2
Banking Crises Since 1974
3
Costs of Banking Crises
4
China and India Rode the Crisis
5
GDP Loss during Crises
6
Stock Market During Crises
7
Growth in Developing Countries
8
Slowdown in World Growth
9
East Asian Exchange Rates US/Foreign Currency
10
GDP Growth in Crisis Countries
11
Real Wages during Crises
12
Crisis Unemployment Rates
13
Causes and Blame(enough to go around)

• Mahatir - Speculative Hedge Funds
• Suharto - Misguided Policy Interventions and
  exaggerated claims of government malfeasance
• Others - Crony capitalism, lack of transparency,
  faulty banking systems, inadequate regulatory
  environment

Element of Truth in All of The Above
14
Impact is Felt in Four Major Areas

• Fall in the Demand for Labour
• Decrease in Real Wages
• Reduction in Public Spending Because of Revenue
  Falls
• Social and Political Upheaval