Asian Financial Crisis

A frugal paradox is defined as "the change in savings that families are trying to save on their income results in a change in equilibrium income, but equilibrium savings do not change, which inevitably remains equal to planned investment" (Begg, Fisher, Dornbusch, 2009). The increase in savings is actually consumption consumed by consumers. Domestic savings have increased the country's investment to promote economic growth. However, there is a possibility that savings will cause financial crisis in Asian countries. Dr. Zhou Xiaochuan, President of the People's Republic of China, says, "East Asian countries are influenced by Confucianism, and this kind of thinking reflects thrift, self-control, moderate, mid-range (weak).

Asian financial crisis Asia's lively economies collapsed one after another due to the Asian financial crisis in Thailand, Indonesia, South Korea, Malaysia and Hong Kong, the economy collapsed and the economy fell into recession. The currency plummeted and the Indonesian Rupiah was most severely affected and was exchanged for $ 1 to $ 1 to $ 1 from $ 1 to $ 1 before the crisis of January 1998. There were civil and political chaos in Indonesia. The impact of the crisis is not that serious, but Singapore is not escaping

Due to the Asian financial crisis and the crisis in the hotel industry in Singapore, the tourism industry in Singapore has declined. Even before the Asian financial crisis broke out in August, the area was experiencing a severe mist due to indiscriminate deforestation by companies cutting and afforesting in Sumatra, Indonesia. In 1997 and 1998, the number of visitors decreased from 7.29 million in 1996 to 7,190,000, to 6.24 million. Total tourism revenue in 1998 decreased to S $ 8.3 billion, revenue returned to 1990 level.

As the political departure between major countries of East Asia made regional cooperation difficult, the Asian financial crisis and trust in institution building in the Washington region, the Asian financial crisis is confined to APEC and requires US participation It was lost until. East Asian economic integration is market oriented, APEC is a platform of cooperation, the concept of open regionalism allows trade cooperation between neighboring countries of East Asia without discriminating people outside the region. It can be said that when the Asian financial crisis hit, cooperation between finance and finance has just begun, it seems to be disturbing the crisis.