The Asian crisis and flow-of-funds analysis

This paper is an application of Flow-of-Funds analysis to the case of Thailand during the 1996–97 Asian crisis. It begins with a background historical sketch of the financial crisis in East Asia, emphasizing the central role of weak financial systems and foreign debt. The paper then presents a method of estimating quarterly Flow-of-Funds accounts using Thailand as an example. This simple method is available from data published by the I.M.F. for most of the countries of the world. The Thai data are then used in a Flow-of-Funds analysis of the crisis in Thailand. This analysis contrasts with the opening historical sketch in quantitatively tracing the significant financial flows and, particularly, the finances of the private sector. The paper closes by emphasizing the need for current reporting of data to facilitate such analyses.