Thoughts Of The Asian Crisis

1211 Words Dec 3rd, 2015 5 Pages
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Thoughts of the Asian Crisis (1997-1998)
In the period between 1997 to 1998, a great economic storm blew the some fast-developing countries, especially Thailand, Indonesia and Malaysia. They had great economic development before the crisis, but left almost everything at the end of the storm. The most obvious impact of the crisis is the capital outflows and currency devaluation. So, people in those developing countries began to find who should be responding to the crisis. International speculators were appropriate targets to be blamed due to their actives during the crisis. The President of Indonesia, Suharto, even claimed “There are [parties] trying to engineer the fall of the rupiah to the 20,000 level [against the dollar]. It does not make sense. Therefore, we must be cautious and find ways to deal with this, ” in West Java. Simultaneously, Mahathir, the prime minister of Malaysia, also went against Soros and called him “criminal” after the crisis start. Nonetheless, here is a question: if the international speculators caused the Asian crisis?
This question is important: historically, it is not the first time that people blamed international speculators for causation of the crisis; in the case of Japan Yen crisis at 1980s and Pound crisis at 1992, speculators shorted Yen and Pound and made tremendous profit and as result, the more and more people began to claim speculators once they were suspected to involve a crisis. Nevertheless, East Asian crisis is quite…

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