Asian Financial Crisis

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Asian Financial Crisis

A situation in which a number of East Asian currencies collapsed in value, forcing the IMF to launch a $40 billion loan program to stabilize their economies. The crisis started in 1997, when the Thai baht began to float for the first time; this resulted in rapid devaluation of the currency and large price increases. Similar things began happening in Hong Kong, Laos, Malaysia, the Philippines, and especially Indonesia and South Korea. This occurred despite the fact that most of these governments had no national debt and were thought to have been pursuing rational monetary policies. The Asian financial crisis ended what was previously called the East Asian economic miracle.

Analysts disagree about what caused the crisis. Some economists have argued that there was too much foreign capital investment in East Asia without a concomitant increase in domestic productivity. Others have cited supposed crony capitalism in many of these countries, while still others blame the IMF for exacerbating what they say was a minor situation.
References in periodicals archive ?
The worries have led some to fear that the region could see a repeat of the 1997 Asian financial crisis.
The World Bank and IMF had already left a bitter taste following the 1997 Asian financial crisis, which many Asian leaders at least partly attributed to the austere restructuring plans that the two institutions demanded in their loan agreements.
He added: "I used to own DIGI and Prudential, but during the 1997 Asian Financial Crisis, I had to sell those two crown jewels to help build Berjaya Times Square.
He sold the shares for the same amount to Putrajaya in the aftermath of the 1997 Asian Financial Crisis.
They recovered powerfully from war in the 1950s, and then from the 1997 Asian financial crisis.
Malaysia's former Prime Minister, Mahathir Mohamad, first mooted the idea in the wake of the 1997 Asian Financial Crisis.
Andy, who began his career at the World Bank, is something of an economic fortune-teller: he predicted the bursting of the 1997 Asian Financial Crisis, the 2000 dotcom bubble and 2008 credit bubble, all of his predictions being published in influential publications worldwide.
Trend growth was unaffected by the 1997 Asian financial crisis or the 2008 global financial crisis.
Founded in 1941, PAL is Asia's oldest commercial airline and it was one of Asia's biggest until the 1997 Asian financial crisis forced it to drastically slash its international operations, reducing its fleet and laying off thousands of employees.
pictured The rapid fall in Asian currencies recently has again revived the fears of 1997 Asian financial crisis, Doha Bank Group CEO Dr R Seetharaman () has said.
For example, Bumrungrad Hospital, which is more popularly known as the American Hospital, started promoting itself as a medical tourism destination in the wake of the 1997 Asian financial crisis, when many wealthy Thais lost their fortunes and could no longer afford the American-run establishment's costly services.
The end-2012 figure is the lowest that the industry posted since the 1997 Asian financial crisis.