ABSTRACT
The East Asian economic crisis of 1997-98 has prompted closer examination of measures to strengthen the region against the prospect of recurring crises. Countries in the region have tried to reduce vulnerability by introducing greater flexibility into exchange rate regimes and improving corporate governance and prudential regulation of domestic financial sectors. There has also been constructive dialogue on cooperative regional measures to promote stability and growth. A key outcome of this dialogue is the network of swap agreements contained in the Chiang Mai Initiative (CMI). While the CMI should be welcomed in its own right, some see it as part of evolving regional cooperation that may result in larger, more comprehensive and more elaborate regional arrangements for crisis prevention and resolution.
