An alternative view is that weaknesses in Asian financial systems were at the root of the crisis. These weaknesses were caused largely by the lack of incentives for effective risk management created by implicit or explicit government guarantees against failure (Moreno, Pasadilla, and Remolona 1998 and others cited below). The weaknesses of the financial sector were masked by rapid growth and accentuated by large capital inflows, which were partly encouraged by pegged exchange rates.