Asian financial crisis

The Asian financial crisis was a financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries, many part of the East Asian Tigers. It is also commonly referred to as the Asian currency crisis or locally, although inaccurately, as the IMF crisis.

Consequences

The Asian crisis affected currencies, stock markets, and other asset prices of several Asian countries. Indonesia, South Korea and Thailand were the countries most affected by the crisis.

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The economic crisis also led to political upheaval, most notably culminating in the resignations of Suharto in Indonesia and Chavalit Yongchaiyudh in Thailand. There was a general rise in anti-Western sentiment, with George Soros and the International Monetary Fund in particular singled out as scapegoats.

Related Topics:
Suharto - Chavalit Yongchaiyudh - George Soros - International Monetary Fund

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Culturally, the Asian financial crisis dealt a setback to the idea that there is a distinctive set of Asian values, i.e. that East Asia had found a political and economic structure that was superior to the West. The Asian crisis also raised the economic prestige of the People's Republic of China considerably.

Related Topics:
Asian values - People's Republic of China

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The Asian crisis contributed to the Russian and Brazilian crises of 1998, because after the Asian crisis banks were reluctant to lend to emerging countries.

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The crisis has been intensively analyzed by economists for its breadth, speed, and dynamism; it affected dozens of countries, had a direct impact on the livelihood of millions, happened within the course of a mere few months, and at each stage of the crisis leading economists, in particular the international institutions, seemed a step behind. Perhaps more interesting to economists is the speed with which it ended, leaving most of the developed economies unharmed. These curiosities have prompted an explosion of literature about financial economics and a litany of explanations why the crisis occurred. A number of critiques have been leveled against the conduct of the International Monetary Fund in the crisis, including one by former World Bank economist Joseph Stiglitz.

Related Topics:
Financial economics - International Monetary Fund - World Bank - Joseph Stiglitz

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