Cover -- CONTENTS -- Editor's Introduction -- Chapter 1 Determinants of Asian Capital Flight and the Impact of 1997 Economic Crisis -- 1. Introduction -- 2. Capital Flight Measurement -- 2.1. Direct Measures -- 2.2. Indirect Measures -- 3. Capital Flight from Asia -- 3.1. Sources of Information -- 3.2. Preliminary Analysis of Capital Flight -- 4. Determinants of Capital Flight -- 4.1. Literature Review -- 4.2. Regression Model -- 4.3. Empirical Findings -- 4.4. Policy Implementation -- 5. Conclusions -- References -- Chapter 2 The Asian Financial Crisis, Deflation, and Structural Change in Hong Kong -- 1. The Changing Structure of the Economy -- 2. The Asian Financial Crisis and Economic Recession -- 3. The Need for a Theoretical Framework -- 4. Price Changes: Cyclical versus Structural -- References -- Chapter 3 Indonesian Economic Recovery Process and the Role of Government -- 1. Introduction -- 2. The Crisis and the IMF Program -- 2.1. Technical Content of the Program -- 2.2. Policy Process and Government Capacity -- 3. The Recovery Process -- 3.1. Managing public debts -- 3.2. Fiscal Decentralization -- 3.3. Monetary Policy and The Central Bank -- 3.4. Corporate Restructuring -- 4. The New Role of Government -- 5. Conclusion -- References -- Chapter 4 Financial Crisis and Restructuring in Thailand -- 1. Introduction -- 2. The Evolution of the Crisis in Thailand since the 1980s -- 3. The Restructuring Process -- 3.1. Financial Restructuring -- 3.2. Corporate Debt Restructuring -- 3.3. The Thai Asset Management Company (TAMC) -- 4. Constraints on Restructuring -- 5. Conclusion -- References -- Chapter 5 East Asia FTA: Economic Modalities, Prospects and Further Implications -- 1. Context -- 2. Toward a concise economics of EAFTA -- 2.1. Scope and framework -- 2.2. Trade creation and trade diversion -- 2.3. Transaction costs -- 2.4. Market widening -- 2.5. Rules of origin -- 3. Implications for regional partners -- 4. Need for regional policy -- 4.1. Conceptual formulations -- 4.2. Possible future orientation -- Appendix 1: Summary of the Global Trade Analysis Project (GTAP) model applied in this study -- References -- Chapter 6 A Fundamental Scope for Regional Financial Cooperation in East Asia -- 1. Introduction -- 2. Lessons from the Financial Crises in the 1990s -- 3. How to Manage External Financing -- 3.1. Patterns and Compositions of Capital Flows in East Asia -- 3.2. Exchange Rate Regimes -- 3.3. External Debt Management -- 4. How to Manage Domestic Financing -- 4.1. Financial Vulnerability? -- 4.2. Macroeconomic Adjustment -- 4.3. Growth cum Credit -- 4.4. Credit Crunch? -- 5. Macroeconomic Linkages and Monetary Integration -- 5.1. Capital Market Integration -- 5.2. Comparative Macroeconomic Linkages -- 6. Conclusion: A Scope for Regional Financial Cooperation -- References -- Chapter 7 Financial Cooperat.