The Asian Financial Crisis: Causes & Consequences Few financial events have so rocked the world economic order as the Asian financial crisis of 1997-98. Beginning with the collapse of the Thai currency in early July of 1997 and extending through the near meltdown of the South Korean economy in December 1997 through January 1998, the financial crisis toppled one "tiger" after another. The chaos that resulted even challenged the solvency and stability of the once seemingly invincible Asian economic …
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showed last 75 words of 1635 total
…infrastructure, the Asian crisis can serve as a reminder that it is impossible to separate politics from economics. Secure financial systems can reduce the problems of corruption and "crony capitalism", but they are unlikely to remove political influences from financial decision-making. The Asian financial crisis taught the global economy a lesson: careful analysis of creditworthiness is essential and in the future, both direct investors and lenders must conduct more careful assessment, and demand greater accountability.