Facing the Asian Financial Crisis

Former Bank of Japan Gov. Haruhiko Kuroda has faced many challenges in his more than half-century in the policy field -- the Asian Financial Crisis was one of them.   In July 1997, he became director-general of the Ministry of Finance's International Finance Bureau. That same month in Thailand, the financial crisis began.   The following year, with the crisis having spread to neighboring countries, Japan announced a $30 billion New Miyazawa Initiative to support them. This became the template for the Chiang Mai Initiative (CMI), a regional currency swap agreement.   Kuroda's foremost task at that time was to help Asian countries and establish a financial safety net to contain currency crises. As such, the CMI played an important role. Since its introduction, Kuroda notes, the initiative has been enriched in terms of quality and quantity.   The Asian Financial Crisis, however, was just one of many trials the former BOJ chief faced throughout his career. At home, he was tasked with addressing Japan's chronic deflation. "I thought hard about how to reconcile Japan's national interests with those of the world," Kuroda recounts.   After completing his 10-year term as head of the central bank last year, Kuroda started a new chapter in his life by going into the academic field. "I would like to share with young people in Japan and abroad my experiences and the lessons I have learned from both my failures and successes," he writes.   In his own words, Kuroda shares his personal history. Take a look at our 29-part series for a glimpse into Kuroda's life.   This is an English translation of Nikkei's "My Personal History" ("Watashi no Rirekisho"). Since its first publication in 1956, a variety of world-changing individuals have written or dictated their life stories for the series.	All Newsletters  |  View in browser
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	February 10, 2024

	The Asian Financial Crisis: Haruhiko Kuroda Former Bank of Japan Gov. Haruhiko Kuroda has faced many challenges in his more than half-century in the policy field -- the Asian Financial Crisis was one of them.   In July 1997, he became director-general of the Ministry of Finance's International Finance Bureau. That same month in Thailand, the financial crisis began.   The following year, with the crisis having spread to neighboring countries, Japan announced a $30 billion New Miyazawa Initiative to support them. This became the template for the Chiang Mai Initiative (CMI), a regional currency swap agreement.   Kuroda's foremost task at that time was to help Asian countries and establish a financial safety net to contain currency crises. As such, the CMI played an important role. Since its introduction, Kuroda notes, the initiative has been enriched in terms of quality and quantity.   The Asian Financial Crisis, however, was just one of many trials the former BOJ chief faced throughout his career. At home, he was tasked with addressing Japan's chronic deflation. "I thought hard about how to reconcile Japan's national interests with those of the world," Kuroda recounts.   After completing his 10-year term as head of the central bank last year, Kuroda started a new chapter in his life by going into the academic field. "I would like to share with young people in Japan and abroad my experiences and the lessons I have learned from both my failures and successes," he writes.   In his own words, Kuroda shares his personal history. Take a look at our 29-part series for a glimpse into Kuroda's life.   This is an English translation of Nikkei's "My Personal History" ("Watashi no Rirekisho"). Since its first publication in 1956, a variety of world-changing individuals have written or dictated their life stories for the series.
	Pursuing the national interest: Haruhiko Kuroda (1) Former BOJ governor reflects on 56 years in public service Read more The siren of independence: Haruhiko Kuroda (2) Kuroda reflects on his early years and Japan's transition to independence Read more The influence of great teachers: Haruhiko Kuroda (3) Two elementary school teachers greatly influence Kuroda's future Read more Studying for six years at Kyokoma: Haruhiko Kuroda (4) Haruhiko Kuroda explores science, philosophy and politics as a young student Read more Analytical philosophy: Haruhiko Kuroda (5) Kuroda dives into his studies at the University of Tokyo Read more Early years at the Ministry of Finance: Haruhiko Kuroda (6) Kuroda joins Finance Ministry as Japan is rocked by social change Read more Study in the U.K.: Haruhiko Kuroda (7) Future central bank chief meets luminaries of economics while studying abroad Read more Collapse of the fixed-exchange rate system: Haruhiko Kuroda (8) Back at the Finance Ministry, Kuroda works to cope with 1971 Nixon Shock Read more The first oil crisis: Haruhiko Kuroda (9) Coping with the first oil crisis and a move to Washington Read more The failure of the general consumption tax: Haruhiko Kuroda (10) Now at Tax Bureau, Kuroda learns difficulty of implementing tax reforms Read more Working in Mie prefecture: Haruhiko Kuroda (11) Kuroda takes on local issues in management role in regional post Read more Butting heads with the U.S.: Haruhiko Kuroda (12) Kuroda handles international issues after returning to Finance Ministry Read more The collapse of the bubble: Haruhiko Kuroda (13) Kuroda looks back on the sharp downturn in asset values in Japan Read more The end of the Cold War: Haruhiko Kuroda (14) Kuroda is on hand to see the start of German unification and the fall of the Soviet Union Read more Policy discussions with foreign authorities: Haruhiko Kuroda (15) Kuroda visits Uzbekistan, Vietnam and elsewhere as Finance Ministry's research chief Read more The Asian Financial Crisis: Haruhiko Kuroda (16) Kuroda works to contain the 1997 crisis, proposing 'Asian Monetary Fund' Read more The Chiang Mai Initiative: Haruhiko Kuroda (17) Kuroda begins working at top international post in Japan's Finance Ministry Read more The beginning of deflation: Haruhiko Kuroda (18) Kuroda believed BOJ's lifting of zero interest policy in 2000 was a mistake Read more The Koizumi premiership: Haruhiko Kuroda (19) After decades at the Finance Ministry, Kuroda becomes an adviser to the prime minister Read more Leading the Asian Development Bank: Haruhiko Kuroda (20) Kuroda becomes the bank's president and promotes regional economic integration Read more Strategy 2020 at the ADB: Haruhiko Kuroda (21) Kuroda makes major changes to the bank's long-term strategy Read more The Global Financial Crisis: Haruhiko Kuroda (22) Kuroda heads to Europe, U.S. to gain support for ADB's 200% capital increase Read more The introduction of QQE: Haruhiko Kuroda (23) Kuroda takes over at the BOJ and embarks on unprecedented monetary easing Read more Negative interest rates: Haruhiko Kuroda (24) Decision barely passes at BOJ's monetary policy meeting by a thin 5-4 majority Read more The introduction of yield curve control: Haruhiko Kuroda (25) BOJ's new framework intended to raise inflation, but wage growth remained sluggish Read more The COVID-19 pandemic: Haruhiko Kuroda (26) BOJ works to keep Japanese economy afloat during unprecedented challenge Read more Leaving the BOJ governorship: Haruhiko Kuroda (27) Kuroda's long run as head of the Bank of Japan ends amid international discord Read more International connections: Haruhiko Kuroda (28) Kuroda reflects on his interactions with financial officials and Nobel-winning economists Read more Academic life: Haruhiko Kuroda (29) Kuroda enters academia to share his experience with future generations Read more
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