Financial Turmoil In Asia free essay sample

Discusses some of the causes of the financial crisis in East Asia in 1997. Examines the possible future direction of these economies and potential ramifications for future choices. The financial turmoil in East Asia has affected markets in different parts of the world and has had a particularly devastating effect on the countries of East Asia itself. The causes are both internal and external. Over the past decade international capital markets have been globalized and money has flowed in huge volumes into developing economies that are supposedly offering high rates of return. For example, the initial financial crisis in Thailand was instigated by foreign capital flowing to offshore Thai banking facilities. This money was in turn lent at extremely low interest rates to local real estate developers and entrepreneurs in the country. When the Thai currency was forced off its peg those who had borrowed in dollars suddenly found their loans much more expensive than originally expected (Let this be a lesson 71). We will write a custom essay sample on Financial Turmoil In Asia or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page