The Asian Financial Crisis

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FINAL PROJECT- ASINAN FINANCIAL CRISIS 1997
INTRODUTION
The Asian financial crisis (or Asian Contagion) was one of the most darkness crisis of Asian‘s economic beginning in July 1997. The center of this crisis included: Thailand, South Korean, Japan, China, Hong Kong, Taiwan, Singapore, Malaysia and Philippine. According to Prof. Charles W.L.Hill, University of Washington, “Asian financial crisis swept like a brush fire through the "tiger economies" of SE Asian”. And then, it raised fears to the all worldwide economic.
The crisis started in Thailand (well known as Tom Yam Kung crisis) with the financial collapse of the Thai baht. After that, from country to country, it affect to Asian and whole economic of world. In early 1990s, Asia’s economic, especially nine above countries, were rapidly growing. However, this came to an end in late 1997 when currency markets imploded and stock value lost about 70 percentages. By 1999, the economies of Asia were beginning to recover. Following to Peter J. Morgan in ADBI Working Paper Series, after the 1997 Asian Financial Crisis, “economies in the region are working toward financial stability on financial supervision”
CAUSE
Several factors include domestic and external as well as foreign and domestic investors contributed to the dramatic failure of Asian financial crisis:
An Investment Boom to Excessive Borrowing
In early 1990s, Asian became one of the most attractive markets in the world with high growing investment, improvement technology, young and skill labor. However, with that rapidly and no control growth, Asia was in the grips of an unprecedented investment boom, and much of it financed with borrowed money. Like what happened to the US in US crisis in 2007-2010, there was more and more borrowed money used for speculative purposes in real estate projects such as retail space, office buildings, hotels, and other real estate. In continuous, those huge money went into these assets caused their prices to rise



Cited: Cheng, Andrew. Development of Asian. LA: LA Times , 2010. Moreno, Ramen. "What Caused East Asia’s Financial Crisis?" Economic Research (2013): 2. Morgan, Peter J. "Asian Development After 1997 Asian Financial Crisis." ADBI Working Paper (2012). Rodrigo, Prof. "A Critical Analysis of The 1997 Asian Financial Crisis." The WritePass Journal (2013). staff, IMF. Internation Money Fund. 23 1 2012. 1 12 2013 . W.L.Hill, Charles. "The Asian Financial Crisis." n.d.

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