Asian Economic Crisis

The Asian Economic Crisis, which began in 1997, was a period of financial turmoil that affected several Asian countries, including Thailand, Indonesia, and South Korea. It started when the Thai baht collapsed due to heavy debts and speculative investments. This triggered a chain reaction, leading to stock market crashes, currency devaluations, and economic downturns across the region. The crisis revealed vulnerabilities in financial systems and resulted in widespread poverty and unemployment. It prompted international intervention, including assistance from the International Monetary Fund (IMF), to stabilize economies and restore growth.