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AznFinancCrisis - IMF was forced to initiate a $40 billion...

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What was the Asian Financial Crisis? A period of financial crisis that gripped much of Asia beginning in the summer of 1997 and raised fears of a worldwide economic meltdown (financial contagion). AKA East Azn currency crisis or IMF crisis. 2) What caused it? Started in Thailand w/financial collapse of the Thai Baht by decision of the Thai govt to float the baht, cutting its peg to the USD. As the crisis spread, most of SE Asia and Japan saw slumping currencies, devalued stock markets and asset prices, and a precipitous rise in private debt. Countries most affected: Indonesia, SK, Thailand
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Unformatted text preview: IMF was forced to initiate a $40 billion program to stabilize the currencies of SK, Thailand, and Indonesia. currency speculators began selling off the currencies of Southeast Asian countries. Thailand, the Philippines, Malaysia, and Indonesia were forced to let their currencies be devalued. Currency problems of Azn countries led to stock market crashes in several of them. other emerging markets around the world (notably Brazil) suffered as investors generalized the problems in Asia. 3) What are the lessons? What can the international community do to avoid another crisis?...
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