Asian Crisis Essay

686 words - 3 pages

Asian Crisis
• What happened and when did it happen?
Asian Crisis that hit pacific Asian in middle 1997, it liked a big earthquake suddenly hit Southern Asia. In Thailand, the July 2, 1997 when it currency had to devalue, the baht, about 20% against the US dollar, as a result of intense pressure in the foreign exchange market. Not only currency speculators but also many Thai residents were trying to sell the baht and buy the US dollar,
causing and worsening capital flight out of the country, as the Thai government was running out of its foreign reserves and losing market confidence in maintaining the currency value and financial stability. The interest rates were shot up, as the outflow ...view middle of the document...

Second, there are some financial factors. Many of the Asian countries have been trying to attract short-term capital money from abroad to finance growing credit demand at home. This is the main reason why the governments were so reluctant to devalue their currencies for the benefit of foreign investors. As a result, their financial system as a whole became so vulnerable.
Third, there are macroeconomic, fundamental factors. With overly ambitious development targets pursued by the governments, many of the Asian economies were overheating with high inflation rates and large trade deficits, contributing to heavy external borrowing and currency overvaluation.
Fourth, there are political and structural factors. In Asia, many of the political leaders became de-facto dictators, based on their antiquated political systems
with special privileges for their inner circle and widespread corruption in key government sectors.
Finally, one might add the IMF factor. While the IMF has extended its
assistance in an attempt to help ease the Asian crisis and to restore
some confidence in the...

Other assignments on Asian Crisis

Paper

3448 words - 14 pages to the Asian financial crisis (AFC), the biggest impetus for capital flows was investor overconfidence in the region’s economic prospects. However, the underlying cause of Europe’s crisis and the AFC was the same— massive private capital flows directed toward unproductive investment led to vulnerability and eventual crisis. In Europe, integration preceded crisis; in Asia, crisis spawned deeper integration. ● For Asia and Europe, macroprudential

Business Democratic Essay

664 words - 3 pages It cannot be denied that from past to now the economic world has suffered a lot of crises such as the East Asian financial crisis in 1997, the 2000s energy crisis and especially the global financial crisis in 2008 which had a significant impact on the world economy until now. Generally, the financial recession of 2007-2008 damaged whole economy of the world and caused the steady rise in unemployment rate. Thus, people lost the confidence on

Interview

1203 words - 5 pages South Asian countries, the Singaporean life insurance segment generates business largely from the domestic market, although some business comes from overseas markets including China, Japan, Australia, New Zealand and Hong Kong. The economic conditions in neighboring countries therefore influence the life insurance segment in Singapore, and these have improved since the global financial crisis in 2009, increasing the demand for life insurance

Advantages And Disadvantages Of Modern Technologies

2125 words - 9 pages 1997 onward there has been increased investment in financial services, tourism and retail trade. Asian Financial Crisis, 1997-2002 The terms for the return of Hong Kong to Chinese rule in July 1997 carefully protected the territory’s separate economic characteristics, which have been so beneficial to the Chinese economy.  Under the Basic Law, a "one country-two systems" policy was formulated which left Hong Kong monetarily and economically

The 2008 Financial Crisis

7080 words - 29 pages become entangled in the mess and suffer, even though their practices involved increased rates of foreign exchange, no buying of corrosive mortgages, and decreased risk in derivatives (Wade, 2009). East Asian nations however, were quick to absolve themselves of this fiscal disaster, owing to their ability to utilize export markets (Ohanian, 2010). Before the crisis spread across other nations, the U.S considered export markets a driving

Econimics Term Paper On Inflation

3165 words - 13 pages “Analysis of inflection, CPI and Annual Growth Rate: A South Asian Perspective” Prepared for Bishnu Prakash Adhakari Economics: Course facilitator SOMTU, Kritipur Prepared by Gokul Gaire MBA 2nd Semester SOMTU July 18, 2013 ABSTRACT: The rate of inflation- the percentage change in the overall level of prices- varies grately across time and cross country. The objective of this paper is to analyze the consumer price inflation

Neo-Liberalism

754 words - 4 pages through speculative bubbles. The problems of over-investment and its instability are compounded by deregulation of financial markets, in which ‘hot money’ is free to flow across borders rapidly such as exemplified in the Asian financial crisis in 1997. During the crisis, the International Monetary Fund advised those countries to increase interest rates to stabilize the currency, which whilst favoring the advanced economics for repatriation of

Marketing Plan Of Bubble Tea

2527 words - 11 pages market. It is expected that it will be able to capture a high market share as the acceptance rate of bubble tea increases In the bubble tea café, we are mainly offer different flavours of bubble tea, meanwhile some Asian pastries, snacks and food are also available. 3.3 Marketing/Customer analysis In a market that has become increasingly saturated with beverage chains there is always an opening for something unique and independent from

Vizio

595 words - 3 pages pursue the technology, the Japanese company Sharp made aggressive investments in flat panel displays. By the early 1990s Sharp was selling the first flat panel screens, but as the Japanese economy plunged into a decade-long recession, investment leadership shifted to South Korean companies such as Samsung. Then the 1997 Asian crisis hit Korea hard, and Taiwanese companies seized leadership. Today, Chinese companies are starting to elbow their way into

Historically The State Has Been The Main Engine Of Development

1287 words - 6 pages the state became more and more involved in the economy, these distorted beginnings were further accentuated, as the state became further enmeshed in particularistic and personal networks. The political elite of sovereign Nigeria were never able to overcome the original deficiencies of state construction and create a system of bad governance in which corruption reign. Consequently they simply went from crisis to crisis, both controlling and

Globalization Case

837 words - 4 pages expand their business by giving the country new products and opportunities to develop their economy. GE takes advantage of the economic uncertainty of foreign countries to move into the country at a lower cost. For example, when “Asia slipped into an economic crisis GE spent $15 billion acquiring companies in just six months” (International Business, textbook p. 37). With this aggressive investment, the company’s then CEO, Welch, realized that the

Similar Documents

Economic Crisis Of 2008 Essay

1317 words - 6 pages Causes of Economic Crisis of 2008 and its resulting Recession Student’s Name Institution Introduction The economic crisis of 2008 which began in the United States had great impact in the global economy. The economic crisis began slowly and grew into global economic crisis. It has affected the stock markets to the extent of stopping operations. In the US it is an issue which has been used as

An Accelarator Tied To A Brake

1858 words - 8 pages Abstract This paper examines the widely accepted proposition that the fiscal stimulus saved Australia from the worst effects of the Global Financial Crisis (GFC). It presents theoretical and empirical arguments supporting the view that fiscal stimulus is ineffective in a floating exchange-rate regime. It underlines this by comparing Australia’s experiences in the East Asian Crisis of 1997 and the GFC of 2008–09. It concludes that a

India Industrial Policy Essay

879 words - 4 pages pressure of economic crises. The twin crises were reflected through an unmanageable balance of payments crisis and a socially intolerably high rate of inflation that were building up in the 1980s and climaxed in 1990-91. The current account deficit as a percentage of GDP peaked at a high of 3.1 percent (compared to an average level of 1.4 percent in the early 1980s). The inflation rate (as measured by point-to-point changes in the Wholesale Price

The Global Financial Crisis: Assessing Vulnerability For Women And Children, Identifying Policy Responses

1801 words - 8 pages worker’ effect for women was witnessed more recently in the Latin American crisis in the mid 1990s (Argentina, Brazil and Mexico) and in the East Asian crisis at the end of the same decade (Indonesia, Philippines), with the exception of South Korea, where instead both female and male labor force participation shrunk . While there is more to learn about the factors behind gender specific ‘added worker’ effects, this data shows the importance of