What was the Asian financial crisis?

The Asian Financial Crisis was a period of financial disturbance that occurred in many Asian countries in the mid -90s. The depths of the Asian financial crisis have led the global leader to express the concern that the crisis can spread around the world, and these concerns were used to justify the intervention of the International Monetary Fund (IMF). Economists have taken a number of important lessons of this financial crisis and other periods of financial unrest that occurred worldwide in the 90s, and the crisis emphasized the global nature of the economy.

At the beginning of the 90's at the beginning of the 90s. Many Asian nations have experienced an unprecedented amount of financial growth, which brought significant revenues for investors involved in various economic efforts in Asia. In particular, Asian real estate markets have seen great growth and many governments slowly regulated and inserted risk management strategies. This decision turned out to be very bad.

At the beginning of 1997, several nations reported less concern about their economies and the strength of their currencies. However, most investors and economists believed that the Asian economy would remain essentially strong, and these concerns were devoted to little credibility until July 1997, when Thai Baht collapsed dramatically, followed by currencies in many other Southeast Asian countries. After the first round of the devaluation of the rapid currency, others followed, which caused financial instability to spread from Thailand to nations such as South Korea, Indonesia, Laos, Malaysia and the Philippines.

with devaluation currency came an investor and creditor panic, along with uncontrollable speculation. Speculators also destabilized the Asian economy, while the selection of credit and investment funds created a credit crisis. The nations closed in Asian Financial Crisis desperately needed capital, but found that the funds are still available, which contributed to other economic destabilizaci. In several countries, economic unrest was accompanied by political problems, especially in Indonesia.

Finally, the IMF entered the great infusion of capital to stabilize the Asian economy, and claimed that the Asian financial crisis began to spread around the world as the Asian business partners suffered. About 18 months after the start of the crisis, most Asian markets were largely stabilized and began to recover. One of the most clarified lessons of the Asian financial crisis was the risk of speculation, especially on real estate, and the release of the cascading series of events that could turn an isolated economic problem into regional.