1997 Asian Financial Crisis

The 1997 Asian Financial Crisis was a period of economic turmoil that started in Southeast Asia, triggered by rapid growth, risky borrowing, and currency overvaluation. When investor confidence declined, many countries faced huge capital outflows, causing their currencies to plummet. This led to higher debt burdens, stock market crashes, and recessions, notably in Thailand, Indonesia, and South Korea. International organizations and governments intervened to stabilize economies. The crisis highlighted vulnerabilities in financial systems, emphasizing the importance of prudent regulation and economic transparency to prevent similar issues.