Litteratur Review on Asian Financial Crisis

What policies were used during the Asiatic financial crisis? Will they be effectual for preventing the afterlife crises? The Asian financial crisis in 1997 was considered as a combination of both currency and financial crises reinforcing one another. It has turned on(p) a deep interest in the study of the connect causes, consequences, and potential solutions for such crises. The crisis started in Thailand when the Bank of Thailand decided to gas its currency on July 2nd, 1997. This currency turmoil radiated to other Asian countries and all over the world. Due to the impacts of this Tom-Yum-Goong disease, many countries, South eastern United States Asian countries in particular, suffered severely from the economic downturn. There was a sharp decline in the value of whatsoever currencies. As a result, in order to defend the currencies as s closely as to prevent further damages, numerous policies were introduced, for example, a managed float exchange rate system, high interest rate policy, limit of capital flows and financial fundamentals reform (Rahman, Yui & Foon, 2008). These policies appe ared to flip significant outcomes.

However, although the policies used during the Asian financial crisis were effective in terms of leading the affected countries to overcome the crisis, they cannot prevent future crises, rather they could minimize the risk and decrease damages. The purpose of this turn out is to illustrate that although the Asian countries have learnt from this crisis, there are some risks that could not be averted due to the fact that the all economies are interdependent on one another. This paper will offshoot identify the major causes of the Asian financial crisis, as well as examine the policy responses used and their efficiency. Then, the potency of the policies regarding the dexterity to prevent future crises will be discussed. Before analyzing the policy responses used during the crisis, the causes must firstly be stated. The Thai administrations pegged-exchange rate regime in... If you want to get a intact essay, order it on our website: Orderessay

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