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 birth rate temporarily surged since then until the nation was hit by the 1997 Asian Financial Crisis," explained Lee Ji-yeon, director in charge of population trends at Statistics Korea.
It took a hit during the 1997 Asian Financial Crisis.
When we were hit by the 1997 Asian financial crisis, our debt-to-GDP ratio was much higher and our international reserves much lower.
That is significantly much larger the our reserves prior to the 1997 Asian financial crisis," Beltran explained.
The Philippine banking system is now on very sound footing and continues to be a stable anchor for the economy, according to Espenilla, and this is a product of deep and meaningful financial sector reforms that the BSP implemented since the 1997 Asian Financial Crisis.
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.
That, said Brian Jacobsen, chief portfolio strategist at Wells Fargo Asset Management, has as much to do with Asia's physical distance from North America as it has to do with the lingering and painful memory of the 1997 Asian financial crisis.
This edited volume by Chak Kwan Chan and Kinglun Ngok is about the adoption of workfare in the wake of the 1997 Asian financial crisis in seven East Asian polities, including China, Hong Kong, Macau, Taiwan, Japan, South Korea, and Singapore.
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.