• Home
  • Subjects
  • Miscellaneous
  • Assess competing theories of the causes of financial crisis against evidence from one of the countries impacted by the Asian financial crisis.

Assess competing theories of the causes of financial crisis against evidence from one of the countries impacted by the Asian financial crisis. - Essay Example

Only on StudentShare

Extract of sample
Assess competing theories of the causes of financial crisis against evidence from one of the countries impacted by the Asian financial crisis.

Alon and Kellerman (1999) substantiate this theory in that they state that the crisis was a reminiscent of the 'Domino Theory' of 1960's. There are other view points attributing different reasons for the financial crisis in Asian economies. This paper analyzes the competing theories that examine the causes of the Asian financial crisis in the light of several theoretical models established by research studies on the crisis and its causes.
Before discussing the causes and effects of the Asian financial crisis, it is important to study the background for the evolution of the financial crisis in the Asian economies. The default of a large amount of debts by Hanob Steel Corporation of South Korea started off the financial crisis in the region. This default by the steel major was followed by many business failures in the country. (Amitava Chatterji 2003)
Following this there was an uneasy feeling for the speculators about the economic and political developments in the region. Hence in May 1997 they initiated heavy capital outflows from Thailand putting the baht - the currency of Thailand under pressure. ...Show more

Summary

There have been a number of studies on the Asian financial crisis analyzing the causes of the crises and most of them agree on some broad reasons. Asian economies grew dramatically during the early and mid 1990s. Starting from the year 1997, the Asian economies were affected badly due to the sudden collapse of the East Asian currencies and the economies were subjected to a wide spread recession…
Author : bartellvernon
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Assess competing theories of the causes of financial crisis against evidence from one of the countries impacted by the Asian financial crisis."
with a personal 20% discount.
Find out more

Related Essays

Critically examine why financial liberalisation brought financial crisis in most of the Asian countries (for example South Korea, Malaysia, Indonesia and Thaila
A financial market is a place - an actual location such as a stock exchange building or a virtual location such as in a computer - where buyers and sellers agree to buy and sell financial instruments such as stocks, bonds, or derivatives in order to borrow, lend or invest funds for commercial purposes and in a manner that puts financial resources to best use.
8 pages (2000 words) Essay
The East Asian Financial Crisis in 1997
The economic weakness had more serious consequences to the upcoming market. Most of these emerging market economies were adversely impacted on and at the end collapsed. The International Monetary Fund (IMF) tried though it delayed in helping to curb the problem but recovery was observed at a faster rate even if still the situation has not been properly eradicated.
8 pages (2000 words) Essay
South East Asian Financial Crisis
Foreign Debt to Gross Domestic Product (GDP) ratio rose by almost 60%. ASEAN consisted of Indonesia, Malaysia, Singapore, Philippines, Thailand, Brunei, Vietnam, Myanmar, Laos and Cambodia. It was formed to ensure sovereignty. It was nothing like European Union.
14 pages (3500 words) Essay
Causes and Implication of U.S 2007-2009 Financial Crisis
However there is little in way of consensus and financial crisis are still a regular happening globally. It is of utmost importance to deal with the issues surrounding the just the 2007-2009 financial crisis, the reasons that led to it and the implication.
5 pages (1250 words) Essay
Asian financial crisis of 1997
crisis was triggered by the decision of Thailand to float the baht after exhaustive efforts of the government of the country to support the currency failed. Note that the severe over-extension of the value of the baht was caused by the sudden dive in the real-estate business of
12 pages (3000 words) Essay
Assess competing theories of the causes of financial crisis against evidence from one of the countries impacted by the Asian financial crisis.
There are no studies that can precisely determine the starting and ending time frame of the Asian financial crisis and the particular reasons for such sudden
10 pages (2500 words) Essay
Asian Financial Crisis and Globalisation
Since the economic crisis of Asia begun two years ago, the region has started to express its doubts about the impacts of globalization on the regional societies (Michie
2 pages (500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT