Asian financial crisis explained watch online
As a result of the crisis, many nations adopted protectionist measures to ensure the stability of their currencies.
Of course, ready investors and easy lending often lead to reduced investment quality, and excess capacity soon began to show in these economies.
The Asian crisis led to some much-needed financial and government reforms in countries such as Thailand, South Korea, Japan and Indonesia.
The Japanese yen responded counterintuitively by increasing in value, making Japanese products more expensive and further weakening its economy.
It also serves as a valuable case study for economists who try to understand the interwoven markets of today, especially as it relates to currency trading and national accounts manager.
Japan, for example, cut its already-low short-term interest rates into the negative numbers in early
This often led to heavy buying of U.
Many of the countries affected were beginning to show signs of recovery by
Solutions The Asian financial crisis was ultimately solved by the International Monetary Fund IMFwhich provided the loans necessary to stabilize the troubled Asian economies.