Financial fragility and Crisis Union in the Asia-Pacific region

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


We examine whether core ASEAN+3 countries might be interested in joining a financial "crisis union," allowing for the role of uncertainty by constructing a stylized real options model of the decision problem involved. We calibrate that model by proxying financial fragility with commonly used bank asset ratios and observe that, according to our criteria, a wider financial crisis union might be more attainable the more encompassing that grouping is; however, our results also reinforce the common perception of pervasive, possibly prohibitive, heterogeneity in these countries' banking and financial systems.
Original languageEnglish
Article number7
JournalGlobal Economy Journal
Issue number2
Publication statusPublished - Jun 2009


  • financial fragility
  • crisis union
  • Asia-Pacific region
  • real option
  • calibration


Dive into the research topics of 'Financial fragility and Crisis Union in the Asia-Pacific region'. Together they form a unique fingerprint.

Cite this