What is the Asian financial crisis?
The Asian Financial Crisis is a crisis caused by the collapse of the currency exchange rate and hot money bubble. It started in Thailand in July 1997 and swept over East and Southeast Asia. The financial crisis heavily damaged currency values, stock markets , and other asset prices in many East and Southeast Asian countries.
Which countries were most affected by the 1997 Asian financial crisis?
From 1996 to 1997, the nominal GDP per capita dropped by 43.2% in Indonesia, 21.2% in Thailand, 19% in Malaysia, 18.5% in South Korea, and 12.5% in the Philippines. Hong Kong, Mainland China, Singapore, and Japan were also affected, but less significantly.
How did the Asian financial crisis lead to neoliberalism?
Many Asian countries weakened their currencies and adjusted economic structures to create a current account surplus. The surplus can boost their foreign exchange reserves. The Asian Financial Crisis also raised concerns about the role that a government should play in the market. Supporters of neoliberalism promote free-market capitalism.
What role did the IMF play in the Asian financial crisis?
IMF’s Role in the Asian Financial Crisis. The International Monetary Fund (IMF) is an international organization that promotes global monetary cooperation and international trades, reduces poverty, and supports financial stability. The IMF generated several bailout packages for the most affected countries during the financial crisis.
What predicted the East Asian financial crisis of 1997?
This Predictability and Explanation of the Crisis The Onset of the East Asian Financial Crisis 133 fact is supported by data on capital flows, risk premiums, credit ratings, IMF reports, and other indicators. The biggest warnings came in Thai- land, where the expectations of currency depreciation grew markedly in 1996 and early 1997.
What are the best books on East Asian economic crisis?
JOHNSON, C., 1998. “Economic Crisis in East Asia: The C lash of 661. JOMO, K.S., 1998. “Malaysian Debac le: Whose Fault?”, Cambridg e Journal of Econ omics, Vol. 22, pp. 707-722. KAPUR, D., 1998. “The IMF: a Cure or a Curse?”, Foreign Policy, Summer. KRUGMAN, P., 1994.
What should we learn from the Asian crisis?
affected Asian economies cannot explain why the crisis occurred. greater scrutiny. governance or financial re gulation. The Asian crisis should alert perfect on the home front. Two issues are particularly noteworthy. First, why did many of the world