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    Collapse of the Thai baht in 1997

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    Do you notice any similarities between the collapse of the Thai baht in 1997 and the collapse of the Korean won around the same time (see the country focus)? What are these similarities? Do you think these two events were related? How?

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    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. Loan defaults increased and governments were left with no recourse but to float their currencies, causing massive devaluation.
    These events ...

    Solution Summary

    This explains the collapse of the Thai baht in 1997