The currency crisis occurred in the south east Asia region since 1997, at different intervals in each affected country and spread across other South East Asian countries after, beginning from Thailand…
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These factors included currency speculation, financial imbalances, exchange rate collapse, high inflation rates, excess borrowing and investment in the these countries that were facing crisis, trade deficits, political inflexibilities, and to some extent restrictions imposed by IMF package. As a result, the impacts resulted in the stock market failure, currency depreciation, decline in per capita GDP, excessive borrowing to save the economies, investment withdrawal, international agencies bank ratings to those exposed to the crisis, and fluctuation of imports and exports affecting the countries’ return. Some countries relied on the IMF to provide capital to stabilize the exchange rates and prevent further liquidity in those countries. Other measures involved reforming the monetary policies, financial regulation and asset management. While a country like Japan solved their bankruptcy case with their reserves, other comparative nations in the crisis had depleted theirs. Studying the crisis is a constant reminder of how worse a currency and stock market failure can become a contagion in linked markets. It also allows researchers to examine how each economy solved the crisis after spreading from Thailand, exploring the differences in policies taken and
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Immediately after the crisis, the international monetary fund assigned the primary responsibility of the crisis to East Asian capitalism, particularly its financial markets. The primary strategy by IMF for the countries hit hardest like Korea, Indonesia and Thailand overhauled the financial system in East Asia (Hopkins 2006, p.
Asian entrepreneurs and political leaders received lauding for their economic decision to cooperate with the European and American financial institutions in order to restructure their economies in the worldwide market. The growth of the emerging market economies was so rapid that they were seen as market models.
In trade, Japanese export successes have contributed to expanding surpluses in the country's international accounts since the 1970s. These huge surpluses have been invested abroad, creating a huge stock of foreign assets for Japan. By the mid-1980s, Japan had risen to prominence as the world's largest net creditor nation.
However, in the modern situation, as a result of the introduction of advanced methodology, appropriate communication is possible which results in the accessibility of apposite information regarding the products and business nature, compliant with the recent trends and changes.
This was one of the deficiencies of banking sectors of most of developing and developed nations in Southeast Asian region in the late nineties. The purpose of this paper is to examine the financial crisis in the South Korea and steps that the Government took to remedy and resolve huge economic problems that it faced at the end of the previous century.
The economic weakness had more serious consequences to the upcoming market. Most of these emerging market economies were adversely impacted on and at the end collapsed. The International Monetary Fund (IMF) tried though it delayed in helping to curb the problem but recovery was observed at a faster rate even if still the situation has not been properly eradicated.
Foreign Debt to Gross Domestic Product (GDP) ratio rose by almost 60%.
ASEAN consisted of Indonesia, Malaysia, Singapore, Philippines, Thailand, Brunei, Vietnam, Myanmar, Laos and Cambodia. It was formed to ensure sovereignty. It was nothing like European Union.
The author states that while some countries have been able to embrace democracy others, have remained authoritarian regimes. To be able to understand the contemporary politics of South East Asia, he analyzes the region in the context of colonialism, the nationalist movements that developed as a result of the colonialism.
The main idea of the paper is to present east and southeast Asia differences.The writer of the paper states that the east and Southeast Asian nations have experienced speedier trade and industry enlargement over the pat few decades. A number of these nations have become wealthy in the considerably shorter span of three preceding decades leading to the reference of the advancement as a trade and industry wonder.