urgent question

hi folks,

I am reading Tom Kemp's _The Climax of  Capitalism: The US Economy in the 20th century_. He says that one of the major causes of the world economic crisis in the 1970s was inflationary pressures on dollar. Then he continues by saying that "although  bearing a family resemblance of previous recessions , that of 1974-5, differed  from them in one salient aspect: there was no deflation; instead the dollar continued to lose purchasing power and prices continued to rise. the clearing of ground for recovery by a downward revaluation of assets and the lowering of costs, thus restoring the profitability of capital, did not happen in the classical manner. What did happen from about this time was that plants  that proved unprofitable in the recession did not re-open in the boom:de-insdustrialization had begun. In response to the declining rate of profit at home, corporations sought higher profits by transferring manufacturing facilities to low wage countries". (p.184).
 

What the cause of  _asian crisis_ compared to above scenario? inflation or deflation problem?
 

any help greatly appreciated!!!
 

bye
 

Mine
 
 

--

Mine Aysen Doyran
PhD Student
Department of Political Science
SUNY at Albany
Nelson A. Rockefeller College
135 Western Ave.; Milne 102
Albany, NY 12222
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