Factors That Caused the 1997 East Asian Financial Crisis

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Factors That Caused the 1997 East Asia Financial Crisis Discuss the principal factors responsible for the East Asian currency/financial crisis of 1997. In 1997, there occurred certain shifts in expectations from the market. The regional contagion and confidence led to the East Asian financial turmoil. In 1990s, it had been reported that the microeconomic and macroeconomic businesses were not performing as expected. The local and international investors had not held enough grips into the looming financial challenges to be expected by the financial fragments. These investors panicked and participated in fraudulent and faulty approaches and policies of operation in the market through the influence of the International Monetary Fund together with the global financial body. The financial policies, which were laid by the small businesses within the region, had failed to bring enough financial performance in the local and international market. For instance, reports claim that these businesses were not large enough to hold immense support to the structure of the economy in the region. With time, the stability of the financial structure was brought to question. This was later contributed by the influences obtained from the international financial bodies and the International Monetary Fund committee (Corsetti, Pesenti, & Roubini, 1999, p.305-6). The Asian financial crisis refers to a period of the financial crisis that was experienced in Asia as at July 1997. This crisis

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