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The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.
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Transcript of The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.
![Page 1: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/1.jpg)
The 1997 Asian Financial Crisis (AFC)
Arthur James
Haruto Noguchi
Wayne Saward
![Page 2: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/2.jpg)
Background of the AFC
• When? 1997
• Where? Thailand, Malaysia, South Korea, Hong Kong, Indonesia
![Page 3: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/3.jpg)
Primary Causes of AFC
• Swift Pull-out of Foreign Investments
• Underdeveloped Asian Financial Markets
![Page 4: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/4.jpg)
Primary Consequences
• Devaluation of Asian Currencies
• Collapse of Asian Economies
![Page 5: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/5.jpg)
Impact on Thailand
• 9% Economic Growth
• Devaluation of the Baht
• Baht Buy Back
• Fixed Floating Interest Rates
• 75% Decline in Stock Market
• Company Bankruptcies
• Unemployment
![Page 6: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/6.jpg)
Impact on Hong Kong
• Monetary Authority’s Effort
• Overnight Rate Increase (8%23%)
• Weakened Impact of Financial Crisis
![Page 7: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/7.jpg)
Impact on Malaysia
• Devaluation of the Ringgit
• Fixed Floating Rate System
• Economic Depression in ALL Sectors
![Page 8: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/8.jpg)
Impact on Indonesia
• Devaluation of the Rupiah after Thailand
• IMF to the Rescue
• Severe Inflation
• Suharto Losing Power
![Page 9: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/9.jpg)
Proposition: AFC caused by INTERNAL Factors.
• Asian Economic Growth Reliant Solely on Foreign Investments
• Weak Domestic Banking Systems
• Un-tradable Investments
• No Long Term Plan for Economic Growth
![Page 10: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/10.jpg)
Proposition: AFC caused by INTERNATIONAL Factors
• Unreliable Risk Analysis
• IMF and World Bank – Regulation & Restrictions
![Page 11: The 1997 Asian Financial Crisis (AFC) Arthur James Haruto Noguchi Wayne Saward.](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649f575503460f94c7c5ee/html5/thumbnails/11.jpg)
Proposition: Globalization should be reduced to prevent future crisis
• Globalization is Necessary for Expansion
• International Cooperation
• IMF