The Causes of the Asian Crisis

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The Causes of the Asian Crisis The Causes of the Asian Crisis. There are many speculations about the causes of the Asian Crisis. From my research I found out that there is quite a number of reasons for the Asian currency crisis. There is a book called; The East Asian Miracle, which was published by the World Bank. This book expressed the relationship between government, the private sector, and the market. (See Hoover Digest 1998 No.3. William McGurn. What went wrong?) The book talks about the economic bloom in Southeast Asia. The East Asian countries borrowed a lot of money from the IMF and World Bank and used it to create a better economy for themselves. I found out that the following countries due to their reoccurrence during my research experienced the bloom. The countries are as listed: South Korea, Indonesia, Hong Kong, Thailand, Malaysia, The Philippines, Singapore and Taiwan. These countries experienced a lot of growth, growth that even doubled the growth in the rest of East Asia, and almost tripled the growth in Latin America. The economic miracle started in South Korea, Hong Kong, Taiwan and Singapore then Malaysia, Thailand, Indonesia and the Philippines. These ... ... middle of paper ... ...orea's was slipping. It seemed that the larger the current account deficit was the harder it was for the IMF to find a solution. Another was that each country asked for help at different times from the IMF. Thailand called when most of its usable reserves were done and Korea called when it was almost drowning in the problem. These were the likely causes of the Asian financial crisis I found out from my research. Some say that the IMF is responsible for the problems but from this analysis of the address from Stanley Fischer, a representative of the IMF, they do not think that they are responsible.

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