The onset of the 1997 Asian financial crisis took the world by surprise. Its severity and the alarming speed at which it spread sent shock waves around the world. There is still no consensus as to the real causes of this catastrophe although a steep fall in export demand with exchange rates pegged to an appreciating US dollar clearly caused current account deficit problems, which were exacerbated by imprudent bank lending and debt management practices. The economies of Thailand, Indonesia, Malaysia, South Korea and the Philippines were vulnerable to speculative runs on their currencies and rapid foreign investment repatriation with a collapse of investor confidence. It soon became evident that globalisation has its downside for economies unable to withstand the massive capital surges caused by hedge fund manipulation.
Ryan, L. (2000), "The “Asian economic miracle” unmasked: The political economy of the reality", International Journal of Social Economics, Vol. 27 No. 7/8/9/10, pp. 802-815. https://doi.org/10.1108/03068290010335235
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