Asia's Economic Slowdown

Paper Summary:

This paper discusses the several factors responsible for the economic slowdown in South East Asian countries in recent years, including headings like the Asian Crisis and the Second World Economic Crisis. Graphs. There are statistics cited throughout the paper to support and balance the discussion.

From the Paper:

"The East Asian economic miraculous growth since the 1980s has came to an abrupt end with the Asian financial crisis from 1997 to 1998 (Cheong, 2001), and it has contributed significantly to the slowdown of Japan and the four Asian Tigers. There are several factors that led to the Asian Crisis in July 1997. According to the International Monetary Fund (IMF) (1999), the difficulties that East Asian countries faced were not primarily the result of macroeconomic imbalances. Rather, these stemmed from weaknesses in their financial systems and governance. Most were having budget surpluses, external surpluses, but low inflation. The maintenance of relatively fixed exchange rates led banks and corporations to borrow large amounts of international capital, much of it short-term, that are denominated in foreign currency, and unhedged. Also, as the contagion spread to Korea, the world's eleventh largest economy, the possibility of a default by Korea raised a potential threat to the international monetary system (IMF, 1999)."

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