Asian Financial Crisis of 1997

It is indeed true to assert that The Asian financial Crisis of 1997 imparted a truly tremendous influence on the economic and political development of East Asian nations and sparked the necessary impetus in acknowledging the economic interdependence. This crisis also put clear emphasis on the necessity of cooperation and integration within this region of the world.

Causes of the Crisis

When it comes to the causes of the Asian financial crisis, there are two schools of thought on what caused it. The first school of thought orbits around the idea that the collapse of the Thai Baht in July of 1997 was largely responsible for this crisis. "One view is that there was nothing inherently wrong with East Asian economies, which have historically performed very well. These economies experienced a surge in capital inflows to finance productive investments that made them vulnerable to a...
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