tag:blogger.com,1999:blog-36405856.post5540976770797807257..comments2024-03-26T03:31:06.199-04:00Comments on Ask a Korean!: IMF Bailout of Korea During East Asian Financial Crisis (Part II)T.K. (Ask a Korean!)http://www.blogger.com/profile/07663422474464557214noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-36405856.post-16695873710597502622011-07-22T14:35:40.574-04:002011-07-22T14:35:40.574-04:00It's about time Wangkon936. I'll see you i...It's about time Wangkon936. I'll see you in a few years for part III :)Calvinhttps://www.blogger.com/profile/11110001668421860209noreply@blogger.comtag:blogger.com,1999:blog-36405856.post-27582460992959720962011-07-20T00:43:14.145-04:002011-07-20T00:43:14.145-04:00Lee,
It would help if you read part I first.Lee,<br /><br />It would help if you read part I first.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36405856.post-42028041674288183932011-07-20T00:36:40.163-04:002011-07-20T00:36:40.163-04:00kuiwon,
It is correct that the Fed existed well b...kuiwon,<br /><br />It is correct that the Fed existed well before the Great Depression. However, the Fed was restricted in its lender of last resort functions by flaws within the Federal Reserve Act which had created the Fed:<br /><br />"We trace the Fed’s failure to act as an effective lender of last resort during the Great<br />Depression to defects of the Federal Reserve Act and, more broadly, of the U.S. banking system. In particular, the Act failed to recreate the money market conditions and other institutions that enabled the Bank of England and other European central banks to function effectively as lenders of last resort. In addition, the Act created a system that depended critically on the competence of<br />the individuals running the system—a point which Friedman and Schwartz (1963) emphasize—<br />rather than a set of rules or principles to guide lender of last resort policy. Finally, and perhaps at least as importantly, the Federal Reserve Act failed to replace the crisis-prone U.S. unit banking system with a more stable, concentrated branch banking system, such as those of the United<br />Kingdom and Canada."<br /><br />From pages 3-4 of: http://research.stlouisfed.org/wp/2010/2010-036.pdfAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-36405856.post-28805701159949946692011-07-19T22:23:55.604-04:002011-07-19T22:23:55.604-04:00"One of the major reasons why the stock marke..."One of the major reasons why the stock market crash of 1929 grew into an economic depression was that there was no central financial institution to be the “lender of last resort” that filled the void of confidence to stop a panicked “run” at banks."<br /><br />Wasn't the federal reserve created in 1913? Or was it not then a central financial institution which was "lender of last resort?"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36405856.post-6891483691877859412011-07-19T22:23:02.931-04:002011-07-19T22:23:02.931-04:00Forgive my ignorance, but who are these "fore...Forgive my ignorance, but who are these "foreign currency speculators", and what does is the actual process of "attacking" a currency?Leehttps://www.blogger.com/profile/13593779499712863074noreply@blogger.com