East Asian Economic Crisis

East Asian economic crisis The rapid decline of the East Asian economy is highly likely to end near high growth rates for nearly 30 years. As a result of this crisis, Asian currency fell 50 - 60%, the stock market fell 40%, banks closed down, real estate prices fell. The crisis was triggered by declines in the currency, bad banking, high external debt, loose government regulation and corruption. Panasonic in Thailand, Indonesia, Korea and other Asian countries, as East Asia has had a major impact on the world economy, should provide assistance to countries where other countries are concerned about economic impacts and are economically difficult (Sanger 1).

2 This is the premise of the Policy Model Magazine published at Edmund Phelps, March 1999 East Asia Crisis Roundtable, January 4, the American Economic Association in New York. Hypothesis is the volatility of capital flows

The most important economic event in the 1990s is the financial crisis in East Asia, which also affected the world economy in the coming decades. People may question the uniqueness of the East Asian crisis. Ladlet and Sachs (1998.p.1) answered this question. "The East Asian financial crisis is noteworthy in several respects This crisis has blown the fastest growing economy in the world The biggest financial relief plan This is the 1982 debt crisis Since then, the most serious financial crisis that hit developing countries.

The Asian crisis in 1997-98, which led to the economic downturn in East Asia, is due to excessive expansion and inappropriate regulation. At the heart of the Asian crisis is Thailand's careless macroeconomic management. This is characterized by an illicit financial sector. The expansion of the financial crisis in Asia is a result of the emergence of existing global financial integration (and similar export dependence), unfairness of the current account balance and the accompanying exchange rate as well as devastating speculation and pasture spread throughout the region It is due to the influence. Structural reform and adjustment of Thai and other Asian countries comes from the International Monetary Fund. The main result is the equilibrium exchange rate system currently widely used in the majority of East Asia.