South East Asia Currency Crisis Essay Example | Topics and Well Written Essays - 3500 words

South East Asia Currency Crisis - Essay Example These factors included currency speculation, financial imbalances, exchange rate collapse, high inflation rates, excess borrowing and investment in the these countries that were facing crisis, trade deficits, political inflexibilities, and to some extent restrictions imposed by IMF package. As a result, the impacts resulted in the stock market failure, currency depreciation, decline in per capita GDP, excessive borrowing to save the economies, investment withdrawal, international agencies bank ratings to those exposed to the crisis, and fluctuation of imports and exports affecting the countries’ return. Some countries relied on the IMF to provide capital to stabilize the exchange rates and prevent further liquidity in those countries. Other measures involved reforming the monetary policies, financial regulation and asset management. While a country like Japan solved their bankruptcy case with their reserves, other comparative nations in the crisis had depleted theirs. Studying the crisis is a constant reminder of how worse a currency and stock market failure can become a contagion in linked markets. It also allows researchers to examine how each economy solved the crisis after spreading from Thailand, exploring the differences in policies taken and