Economic History : Asian Financial Crisis

Reasons for the Asian Financial Crisis There have been many discussions and debates involving the reasons behind the financial crisis. Through such discussions many schools of thought have emerged. These schools have focused on many areas both internally and externally to the economies that experienced the crisis. The focus of this essay is to illustrate the four fundamental reasons for the crisis outlined by these discussions. This essay will begin with a brief background of …

…the banks. No checking or auditing was done during this period. Showing all institutions and sectors interlinked and operated under moral hazard ideals. Both internally and externally institutions did not take into consideration previous economic crises in other countries. Lessons must have been recorded and ideals of not what to repeat. International organisations such as the International Monetary Fund and World Bank should have warned these Asian countries of the crisis that could have erupted.