In the summer of 1997, an economic and currency crisis rocked the Asian markets. One by one, Southeast Asian countries such as Thailand, Indonesia, Korea and Japan saw their economies crash in the wake of heavy foreign investment. An economic boom had made the region an attractive investment opportunity for much of the 1990s. By 1997, however, domestic production and development had stalled, and foreign investors grew nervous. A divestment run on the Thai baht triggered the crash. Large corporations
The Asian Financial Crisis Many economists have said that the growth experienced by Southeastern Asian countries during the 1980s and early 1990s was a "miracle." Japan, Malaysia, South Korea, Indonesia and other countries in the region experienced annual growth rates of over 7 percent. Along with this rapid growth, these countries also saw very little unemployment and an almost invisible wealth gap between the different social and economic classes of citizens. Circumstances have dramatically
economic crisis on the other side of the world. The Asian Financial Crisis of 1997 was known for its domino effect throughout the countries in East Asia. The crisis began in Thailand and eventually moved throughout nearby countries, such as Malaysia, Hong Kong, Philippines, and South Korea (Park1). Out of the countries, South Korea was one of the ones the countries who got hit the hardest from the economic declination, but was able to repay its debt to the IMF and other international financial organizations
point, the rest of the world started to see that Thai''''s economy was starting to fall apart. Some pople predicted that the problem would not stay longer than a few months. However, it was wrong. As manner of fact, the problem spread amongs some of Asian Countries. Even the mighty Japan was effected by this problem. United stated of America was also effected by this problem. That was a time that the US stock market was going down due to the fact that Many American cooporation invested in this some
savings be a cause for the financial crisis in Asian countries? As told by Dr Zhou Xiaochuan, Governor of the People’s Bank of China, “ the East Asia countries are influenced by Confucianism, which value thrift, self-discipline, zhong yong or Middle Ground (low-key), and anti-extravagancy” ( 2009). Could this Confucius value be one of the reasons behind the financial crisis that occurred in 1997? On July 2, 1997, Asian countries were struck by waves of financial crisis when the Thai baht was devalued
unprecedented and unexpected financial crisis, causing falling export growth, currency shocks, declines in productivity and resulting in a US$60 billion IMF bailout. Contemporaries feared that the localised crisis would lead to a world wide crisis through contagion, starting with China due to their considerable intra-regional trade and investment with those countries affected by the crisis. China suffered from the same inherent structural weaknesses that caused the demise of its Asian counterparts, perhaps
purchasing power of the people of a particular country. From 1997 to1998, both countries : Thailand and Indonesia reached their highest peak of inflation, which is 9.24% and 75.27% respectively. It is caused by the Asian financial crisis which hit most of the asian countries. The crisis is started in Thailand as its currency, Baht is attacked by the currency traders, and eventually devalued after they found out that the market is unstaintable. For Indonesia, the nation belived that It is triggered
Government and Assessment of Crisis Management.....4 Precautionary Measures of Financial Crisis…………………........……………….…..9 Conclusion and Recommendations……......................................................................10 Introduction In this essay, a brief introduction about the causes and consequences of the Asian Financial Crisis and the Subprime Crisis will be given at the beginning. Next I will look at what measures the Hong Kong government took as crisis management and assess the
in Asian regionalism and his participation of consultancy in the G-24 made him expand his understanding on the legitimacy in Global Financial Governance. In his journal article, Sohn stresses that, regarding the problems of legitimacy in global financial governance, Asian countries have opted to create their own regional financial governance instruments. In accordance with the Sohn, the IMF decisionmaking is managed by G-7 countries which pursue their own interests. After the Asian financial crisis
East Asian Economic Crisis A large economic downturn in East Asia threatens to end its nearly 30 year run of high growth rates. The crisis has caused Asian currencies to fall 50-60%, stock markets to decline 40%, banks to close, and property values to drop. The crisis was brought on by currency devaluations, bad banking practices, high foreign debt,loose government regulation, and corruption. Due to East Asia's large impact on the world economy, the panic in Thailand, Indonesia, Korea, and