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Brad Morrison. Kopczynski, Jessica A., S.M. Massachusetts Institute of Technology System Design and Management Program. System Design and Management Program. 2009-10-01T15:54:19Z 2009-10-01T15:54:19Z 2009 2009 http://hdl.handle.net/1721.1/47861 432313553 Thesis (S.M.)--Massachusetts Institute of Technology, System Design and Management Program, 2009. Includes bibliographical references (leaves 88-89). Financial panics and crashes have become an item of familiarity to many nations around the world over more than several centuries. If history has taught us nothing else, it has taught us that we can learn from the past with the aim of improving the future. In 1997 a chain of events was set off in Asia that culminated in financial panic and crisis for many of the East Asian countries. The research in this paper focuses on the economic environment in South Korea in the years immediately preceding the 1997 financial crisis. The financial liberalization policy of interest rate de-regulation is modeled using system dynamics and the resultant economic behavior is explored. The feedback structure of the model is used to explain the asset bubble that formed during the height of the build-up. The national reliance on short-term commercial paper to finance long-term investments is explored and its relationship to the crisis is discussed. System dynamics is used to model the policy decisions that were made and explore different policy decisions and scenarios to provide insight into the resulting economic behavior. by Jessica A. Kopczynski. S.M. 98 leaves eng Massachusetts Institute of Technology M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 System Design and Management Program. A system dynamics perspective on the build-up to the 1997 South Korean financial crisis Thesis application/pdf Publication unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="7055de4b-edf5-4d76-9b47-ada152fc4956"> <Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type> <Language>eng</Language> <Title>A system dynamics perspective on the build-up to the 1997 South Korean financial crisis</Title> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2009</PublicationDate> <Authors> <Author> <DisplayName>Kopczynski, Jessica A., S.M. Massachusetts Institute of Technology</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> </Authors> <Editors> </Editors> <Publishers> <Publisher> <DisplayName>Massachusetts Institute of Technology</DisplayName> <OrgUnit /> </Publisher> </Publishers> <License>http://dspace.mit.edu/handle/1721.1/7582</License> <Keyword>System Design and Management Program.</Keyword> <Abstract>Financial panics and crashes have become an item of familiarity to many nations around the world over more than several centuries. If history has taught us nothing else, it has taught us that we can learn from the past with the aim of improving the future. In 1997 a chain of events was set off in Asia that culminated in financial panic and crisis for many of the East Asian countries. The research in this paper focuses on the economic environment in South Korea in the years immediately preceding the 1997 financial crisis. The financial liberalization policy of interest rate de-regulation is modeled using system dynamics and the resultant economic behavior is explored. The feedback structure of the model is used to explain the asset bubble that formed during the height of the build-up. The national reliance on short-term commercial paper to finance long-term investments is explored and its relationship to the crisis is discussed. System dynamics is used to model the policy decisions that were made and explore different policy decisions and scenarios to provide insight into the resulting economic behavior.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>