What may be in play, therefore, are the transition costs of a rapid increase in globalization, and especially transition costs associated with entry of emerging market economies into the global economy. A third theme in my interpretation of the Asian crises is perhaps a lesser focus in Hy’s work, but he was nevertheless quite prophetic in relation to the recent crises.
No-one who has read Bagehot on panics can think that understanding of the potential for systemic crises is a new problem.