Asian Financial Crisis

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 ?
Asian airlines are delaying deliveries of new planes and some are on the brink of canceling orders, Boeing said Thursday in issuing a market forecast that shows the aircraft maker could lose about 90 orders over the next five years because of the Asian financial crisis.
The talks, called "Manila Social Forum -- the New Social Agenda for Central, East and Southeast Asia," are a follow-up to another meeting sponsored by the World Bank in Bangkok last January on the social impact of the Asian financial crisis.
He hopes to discuss with Chinese leaders the Asian financial crisis and bills related to the revised Japan-U.
The nation's shrinking defense appetite is primarily responsible for the decline, but the Asian financial crisis is blamed for the latest hits.
During the Asian financial crisis, China played a stabilizing role by maintaining a pegged exchange rate to the U.
The 1997 Asian Financial Crisis is often cited as a catalyst for bringing corporate governance to the foreground, but really the international investor dollar brought about as a consequence of Globalisation has seen increasing efforts amongst Asian countries to take steps, occasionally drastic ones, to ensure enhanced corporate governance.
The ASEAN-plus-three countries agreed in November on the basic principles of the arrangements, aimed at bolstering defenses against the kind of speculative attacks that led to the Asian financial crisis.
Claudio Loddo said, "The Company was established during the Asian financial crisis and downturn in the worldwide semiconductor industry.
Japan's trade minister, Kaoru Yosano, on Wednesday said Japan supports New Zealand's agenda at this week's meeting of Pacific rim economies of seeking stronger market mechanisms in countries hit by the Asian financial crisis, a Japanese official said.
financial markets haven't seen the worst yet thanks to the Asian financial crisis.
He was president of GE Capital Asia-Pacific from 1996-1999 and managed the operation through the Asian financial crisis.
Mahathir has been very critical of how the IMF has dealt with the Asian financial crisis.

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