| Abstract: | This paper seeks to understand the Asian crisis through theeyes of the City of London. Relying upon material provided byThe Financial Times (FT), we construct an index of pessimismto chart the dominant City of London interpretation of the pathof the crisis. This index is set against data on the actualperformance of the Hong Kong, and Tokyo, London, and New Yorkstock markets over the same period. We have the luxury of retrospectivelyreconstructing the actual path of the crisis whereas the FT(and global financial markets) had to respond to specific eventsin a chain of apparent cumulative events. Our goal is to explainthe construction of the dominant pessimistic interpretationof the path of the crisis, placing the City of London in thecontext of global markets (in time, between Tokyo and New York).In the penultimate section of the paper we report on an interviewwith Riley, the FT columnist, about the results of our analysis,emphasizing the apparent homogeneity of information and opinionin the City of London as opposed to New York. The conclusionfocuses upon the implications of this argument for the studyof discontinuities between global markets, and the future offinancial centres. |
