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 ?
Growth, however, has not been a given, and there have been crises and downturns most notably during the 1997 Asian Financial Crisis, and the 2007-2008 Global Financial Crisis when Asian countries also felt the chill.
But beginning with the 1997 Asian Financial Crisis, certain topics are now off-limits for any sensible conversation.
It played a role in stabilizing regional currencies in the aftermath of the 1997 Asian financial crisis and has long championed multilateral economic and security platforms.
Summary: Singapore, May 6 (ANI): Singapore property developer has gone bust for the first time since the 1997 Asian Financial Crisis.
Woori started as the country's first-ever banking group in 2001, consisting of multiple banks that went under in the wake of the 1997 Asian financial crisis.
Grit-During the 1997 Asian financial crisis, Steel Asia suffered a double whammy-they had both the biggest manufacturing capacity in a shrunken market and the biggest dollar debt with the peso rapidly devaluing.
Singapore: Banks in ASEAN have made good progress in the aftermath of the 1997 Asian financial crisis and are now better positioned to address market volatility, Fitch Ratings says.
He compared the severity of the government's current challenge to the 1997 Asian Financial Crisis, but noted that at least the ringgit was resilient now.
Prior to the 1997 Asian financial crisis, the Philippines' tax effort stood nearly 16 percent, but it has been on a downward trend due to a host of factors, including tax evasion, the granting of unnecessary tax-exempt privileges to certain industries, and an inefficient tax collection system.
"The ratio of female workers is increasing at top 600 companies, but female labor participation and employment rates are lower than the OECD average, and Korea has fallen in ranking compared with the 1997 Asian financial crisis," said Choo Kwang-ho, director in charge of job strategy at the institute.
In the first half of the 20th century, Jews were the most frequently targeted group, whereas in the 1997 Asian financial crisis, Chinese traders in the Philippines, Malaysia and Indonesia were singled out.
First, the 1997 Asian financial crisis led to the creation of the group in 1999 as an annual summit for finance ministers and central bank governors.