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 ?
The organization was launched following the Asian financial crisis in 1997, amid a shared sense on the importance of strengthening regional cooperation and integration in achieving financial stability.
The 1997 Asian financial crisis was as predictable as day follows night if you knew what to look for.
He also said the IMF now recognised the somewhat unorthodox measures Malaysia took during the 1997/98 Asian financial crisis to insulate the economy and the ringgit against further speculative attacks by unscrupulous hedge fund operators and currency speculators.
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.
In emerging market forex, the Indonesian Rupiah fell to a three-year low (nearing the low seen during the 1998 Asian financial crisis) and India's Repee dove to a record low.
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.
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.
Najib reiterated the government has no plans to bring back capital controls as Malaysia's economy and financial system are in far better shape than during the Asian financial crisis.
Southeast Asia has in recent years been struck by several crises ranging from the Asian financial crisis to the Bali bombings and avian influenza.
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.

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