Economic History: Asian Financial Crisis

Reasons for the Asian Financial Crisis
There have been many discussions and debates involving the reasons behind the financial crisis. Through such discussions many schools of thought have emerged. These schools have focused on many areas both internally and externally to the economies that experienced the crisis. The focus of this essay is to illustrate the four fundamental reasons for the crisis outlined by these discussions.
This essay will begin with a brief background of these economies leading up to the crisis. Areas focused upon will be the influence and problems created by the economies pegged exchange rates, the amount of borrowing, areas this borrowing was invested into and the blatant disrespect for the rational market paradigm.
Asia is a large region incorporating many of the major economic markets of the world. Over the past 30 years this region has seen major economic growth in many of the worlds important industries. The financial crisis that erupted in Asia in mid-1997 has led to sharp declines in this growth. …