In August , the Asian currency crisis that had started in mid metastasized into a global financial crisis with the devaluation of the rouble and a declaration of a Russian Government default on its internal debt. Is this the first wave of such crises the world will see in the future? One common feature among the countries that have fallen victim to the crisis is that they were all "darlings of international finance". Before the financial crisis of , international investors poured money into the stock markets of the East Asian economies, Latin America, Russia, and Eastern Europe. That the crisis afflicted the very countries that depended most heavily on the international economy for their economic growth suggests the importance of the international dimension -- this is the focus of this book.
Откройте для себя все, что может предложить Scribd, включая книги и аудиокниги от крупных издательств. Maniar Encouraged exports by extending line of credit beyond capacity Banks continued to raise capital in international markets Money raised went to few families or groups close to government Bottom-line of companies started deteriorating. Reason to move Thai Baht from Floating to Fixed Rate Regime Rapid expansion of economy through borrowed capital Excessive investment led to creation of Bubble in the economy Speculation started about fall of Thai baht globally In May and June , Government took steps to quell fears Direct measures Using hard currency reserves Indirect measures Raising interest rates Speculation started again early July was the final nail for Thai authorities. Reasons for Currency crisis spreading to Neighbouring Countries South Asian countries like Philippines, Korea, Thailand, Malaysia grew rapidly during early s Some countries had similar characteristics while others had different characteristics than Thailand Thailand was under tremendous speculative pressure same speculation started to spread to neighbouring countries.