 The Asian Financial Crisis and Chinese Banking Reforms in 1998–2001Yong Guo Chapter 4 in Banking Reforms and Monetary Policy in the People’s Republic of China, 2002, pp 86-102 from Palgrave Macmillan Abstract: Abstract On 2 July 1997 the Asian Financial Crisis officially began with the devaluation of the Thai baht by 15±20 per cent. For Thailand, Indonesia, South Korea and Malaysia, the much-celebrated ‘Asian Economic Miracle’ came to an abrupt end. After decades of fast-paced growth and virtually uninterrupted expansion, there had been an abrupt reversal in capital flows out of these East Asian economies as growth prospects soured after the boom turned to bust. Much of the hot capital flowing into these countries in the years leading up to the crisis had turned from long-term foreign direct investment to short-term speculative investment, which was unsustainable in the long run. Much of the capital flowed in to finance an East Asian real estate bubble, which eventually collapsed, causing a deflation in asset prices. These countries saw their financial systems collapse, their economies falter and millions of their citizens returned to poverty, all within a few months. The financial crisis spread quickly to the Philippines and Hong Kong, then to Brazil and Russia, and eventually to Japan. Keywords: Interest Rate; Stock Market; Monetary Policy; Central Bank; Money Supply (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-1454-5_5 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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