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South asian economic crisis



Published by: The Nicoleta Category: Asian

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The crisis has been intensively analyzed by economists for its breadth, speed, and dynamism; it affected dozens of countries, had a direct impact on the livelihood of millions, happened within the course of a mere few months, and at each stage of the crisis leading economists, in particular the international institutions, seemed a step behind. Criticism focused especially on the informal, nonlegalistic institutionalism of both organizations. Asian financial crisis , major global financial crisis that destabilized the Asian economy and then the world economy at the end of the s. The Japanese yen fell to as mass selling began, but Japan was the world's largest holder of currency reserves at the time, so it was easily defended, and quickly bounced back. In addition, financial systems were to become "transparent", that is, provide the kind of reliable financial information used in the West to make sound financial decisions. This strategy involves close government co-operation with manufacturers of export products, including subsidies, favorable financial deals, and a currency peg to the U. On 14 May and 15 May , the Thai baht was hit by massive speculative attacks.
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