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Causes of asias crisis banks in japan and europe were

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Unformatted text preview: onetary transactions with no parallel in physical output. Loss in competitiveness. Causes of Asia’s Crisis Banks in Japan and Europe were glad to lend overseas because of the domestic economic recession and the high profit margins of Southeast Asia. The long-standing economic boom and low interest rates in the U.S. markets released a flood of funds seeking higher yields in emerging markets. Current account balance of some Southeast Asian economies were getting worse since the emergence of China. Asian Financial Crisis Asian Financial Crisis: sudden and sharp economic shock, currency attack in 1998. The economic bubble collapsed. Prolonged regional instability. Rapid wealth depreciation (fall in asset price). Lack in crisis-management strategies. V-shape bounce-back in other Asian economies. Exposure of structural weakness in economy. “Post-Olympic syndrome” after 1997 (fall in investment, demand and employment). Financial Crisis and Cost Deflation Tourism Number of tourists decreased because...
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