The 1997 and 1998 Asian Economic Crisis Essay -- Business Economics Ec

The 1997 and 1998 Asian Economic CrisisThe purpose of this paper is to explore the causes of the 1997 and 1998 Asian economic crisis and to research the effects of the crisis in each of the following categories1.The effects of the crisis in the countries involved in the economic crisis of 1997-98.2.The effects on the governments affected by the crash, and3.The effects that the Asian crisis has had on the differing knowledge base markets as well as the effects that it will continue to have (if any) on the world markets in the near prox. We will also present our analysis of the causes and our predictions as to what the future will be for the countries involved. The paper will first look at the causes behind the crash. We can see that the main factors include current-account imbalances, fiscal over-lending, banking problems, extremely open economies, and a list of other factors. After we look at the causes behind the crash, we will give an analysis of how to avoid these problems in t he future and what the repercussions will be in the Asian and Global markets. And at the end of the paper will be our conclusions (including how this has helped to better prepare us in the athletic field of International Financial Management). The countries affected by the 1997 Asian crisis include the following1.Korea2.Indonesia3.Malaysia4.Philippines5.Thailand6.China7. chinaware8.Hong Kong (city-state)9.Singapore(city -state)IntroductionThe Asian economic crash of 1997 surprise more than a few people. Ever since the period after World War II, the Asian economies had been following an economic stumper developed by the Japanese. This model favored export markets, domestic investment, and lower savings vs. hi... ...alaysia2.10-3.741.39-0.11-1.59-3.750.58Philippines-5.73-3.00-4.27-8.53-8.95-8.80-9.44-12.30Singapore6.7610.629.298.1214.8715.3813.2612.55Thailand-7.75-6.88-4.70-4.56-5.18-7.09-6.650.14China2.752.861.03-1.921.391.682.104.41Taiwan 6.826.944.033.162.702.104.052.72TABLE 4.0 GDP Growth.GDP Growth1991199219931994199519961997Korea9.135.065.758.588.947.105.47Indonesia6.956.466.5015.938.227.984.65Malaysia8.487.808.359.249.468.587.81Philippines-0.580.342.124.384.775.769.66Singapore7.276.2910.4410.058.757.327.55Thailand8.188.088.388.948.845.52-.043Hong Kong4.976.216.155.513.855.035.29China 9.1914.2412.0912.6610.559.548.80Taiwan7.556.766.326.546.035.676.81All Graphs Compliments of International Financial Statistics of the IMF