Asian Financial Crisis
The Asian financial crisis, which began in 1997, was a severe economic crisis that impacted several Southeast Asian countries. Triggered by the collapse of the Thai baht, it exposed weaknesses in financial systems and led to widespread bank failures, soaring debt, and currency depreciation. Rapid growth had caused excessive borrowing and speculation, leaving economies vulnerable. The crisis spread quickly, affecting countries like Indonesia, South Korea, and Malaysia, leading to recession, social unrest, and significant international intervention. In response, reforms were implemented to strengthen financial regulations and improve economic stability in the region.
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The Asian Financial Crisis, which began in 1997, was a severe financial meltdown that affected several East Asian economies, notably Thailand, Indonesia, and South Korea. It was triggered by a combination of excessive borrowing, speculative investments, and a lack of financial regulation. As the value of currencies plummeted and investors lost confidence, many countries faced economic turmoil, leading to bankruptcies and widespread unemployment. The crisis highlighted vulnerabilities in financial systems and prompted reforms, international assistance, and changes in economic policies across the region. Its effects were felt globally, influencing financial markets and economies worldwide.