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 ?
This edition of the Malaysia Economic Monitor includes a special focus on the Asian Financial Crisis, 20 years on, its impact, management, and lessons learned in Malaysia, the region, and globally.
Malaysia learned from the experience of the Asian Financial Crisis, and in the years since, successive reforms have helped transform the economy and propel it closer to high-income country status.
The office sector was greatly affected by the regional and global economic meltdowns, particularly during the 1997 Asian financial crisis and the global financial crisis of 2007-2008.
The focus on the Asian financial crisis and the global financial crisis extends the useful shelf-life and broadens the audience of the book, given the significant impacts of both crises on many economies in East Asia.
Korean economist Lee collects 16 of his papers published since 2000 on the 1997-98 Asian financial crisis and the 2007-08 global financial crisis into sections on the anatomy of Asian growth and crises, Asian financial crises: responses and lessons, and the global financial crisis and challenges to Asia's sustained growth.
Before the Asian financial crisis, Indonesia had plans for a rapid expansion of power generation, based mainly on opening up the power market to IPPs.
Two typical examples are the Asian financial crisis that happened in 1997 and the debt crisis in Europe that began at the end of 2009.
Kent Calder and Min Ye tackle this explanation of Asian regionalism with the concepts of organization gap, critical juncture, and policy network and argue that Northeast Asia has developed much more coherent regional institutionalization after the Asian financial crisis through policymakers' active responses to environmental changes.
The crises under consideration are the Asian financial crisis of 1997, and the global financial crisis of 2008.
Considering that the surplus recorded in 1998 was of an abnormal nature, caused by a sharp fall in overseas spending due to the 1997 Asian financial crisis, this year's surplus is virtually the first one in 23 years since the service account swung into a deficit in 1990.
He said that since the last Asian financial crisis in 1997-1998, regional nations had been cautious in their economic management and were now more resilient to the impact of external shocks.

Full browser ?