Routledge Dictionary of Economics, Second Edition
East Asian economic crisis (E3, G1, N1, P0)
The crisis of 1997–8 in the financial sector of five Asian countries: Indonesia, South Korea, Malaysia, the Philippines and Thailand. In 1996 there was a capital inflow into these countries of $73 billion but in 1997 an outflow of $30 billion.
With financial deregulation came careless lending by international banks to these Asian countries. When the extent of indebtedness was known, the creditors panicked. There was a fall in exchange rates, an ineffective rescue effort by the IMF and subsequently a banking crisis and a severe fall in effective demand.
This is the complete article, containing 97 words
(approx. 1 page at 300 words per page).
View More Summaries on 1997 Asian Financial Crisis
