Purchase Solution

The Asian financial crisis of 1997-98

Not what you're looking for?

Ask Custom Question

The Asian financial crisis of 1997-98 started with the devaluation of the Thai baht in July 1997 and was followed by financial panic that spread to Malaysia, Indonesia, the Philipines and South Korea (albeit to a lesser extent). What do you think are the main causes of this crisis? Are there factors that are critical in any explanation and which may indicate that a crisis is imminent?

Purchase this Solution
Solution Summary

The Asian financial crisis of 1997-98 are examined.

Solution Preview

First and foremost, the people lost confidence and the country went into extreme debt. The first thing to happen was the real estate driven economy collapsed. The baht, tied to the dollar, could not recover from the financial debt created from overextended credit. This lead to financial assets and stock devaluation and the currencies value dropping along with some that currency that failed.

These were the major reasons for the collapse. Some of the lesser reasons were the panic of foreign investors and private debt increases in Asian countries. When the ...

Purchase this Solution
Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Global Economy 1977

    The 1997-98 Asian Financial Crisis. CRS Report for Congress. Retrieved January 27, 2012 from http://www.fas.org/man/crs/crs-asia2.htm Shah, A. (1998). Debt and the Global Economic Crisis of 1997/98/99. Global Issues.

  • Asian Recession & 2008 Recession

    People believed that the difficulties Asian economies were experiencing in 1997-98 might bring a recessionary gap to the United States. The financial markets of the Asian Countries and the US are interlinked.

  • 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.

  • Collapse of the Thai baht in 1997

    Asian Financial crisis Yes there are similarities between the crisis of Thai Bhat and Korean Won. It is also popularly known as Asian currency crisis. The similarities were that it affected currencies, stock markets, and other asset prices.

  • The Indonesian response to the 1997 crisis

    27099 The Indonesian Response to the 1997 Crisis What have been the implications for the business environment facing foreign investors of measures taken by the Indonesian government since the onset of the East Asian financial crisis in 1997?

  • PPT on pegged currencies and Asian 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.

  • Essay - 3 Pages

    Sales and marketing issues RESOLUTION OF THE ISSUES After the 1997 Asian financial crisis, Korea experienced massive layoffs. Korea has bounced back quite well from the Asian financial crisis of 1997, and foreign money is flowing into the country.

  • Foreign exchange exposure and management

    The Asian Financial Crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown). It is also commonly referred to as the IMF crisis.

  • Small Mistakes' Consequences - East Asian Crisis of 1997

    small mistakes consequences in the East Asian Crisis of 1997.

View More Related Solutions