Asia Financial Crisis.ppt

Less Affected Countries China, The US, and Japan were very strong economies and were able to survive China held most of it’s foreign investments were in factories rather then securities U.S. didn’t collapse, but on Oct 27,1997 the Dow Jones fell 554 points (7.2%) Japan was affected because the economy is so prominent (yen fell to 147), but it was world’s largest holder of currency reserves so it bounced back quickly Conclusion Many businesses collapsed and millions of people fell below the poverty line Indonesia, South Korea, and Thailand were most affected Heavy U.S. investment shifted from Thailand to Europe Many countries pushed for corporate governing to avoid problems later Investors were reluctant to lend to developing countries References Kaufman, GG., Krueger, TH., Hunter, WC. (1999) The Asian Financial Crisis: Origins, Implications and Solutions. Springer. Weisbrot, Mark (August 2007). Ten Years After: The Lasting Impact of the Asian Financial Crisis /wiki/1997_Asian_Financial_Crisis Tecson, Marcelo L. (2009), IMF Must Renounce Its Weapon of Mass Destruction: High Interest Rates Any Questions? Thank You Asia Financial Crisis By: Phong Van and Sandeep Kumar History Before 1997, Asia was attractive By developing countries High interest rates “Asian economic miracle” Four Asian Tigers Introduction July 1997 Countries most affected by the Asian Financial Crisis. Introduction Most affected: Indonesia South Korea Thailand Hong Kong Malaysia Lao Philippines Introduction Least affected People’s Republic of China India Taiwan Singapore Vietnam Introduction Thailand Thai baht Real estate Burden of foreign debt Southeast Asia and Japan Slumping currencies Devalued stock market Steep rise in private debt. IMF Role $40 billion program to stabilize the currencies of South Korea, Thailand, and Indonesia. Bailouts (rescue packages) for the most affected economies to enable affected nations to avoid default. Structural adjustment package SAP cut back on government