The purpose of our paper is to explore the causes of the 1997 and 1998 Asian economic crisis; and to research the effects of the crisis in each of the following categories: 1.The effects of the crisis in the countries involved in the economic crisis of 1997-98. 2.The effects on the governments affected by the crash, and 3.The effects that the Asian crisis has had on the differing world markets as well as the effects that it will continue to have (if any) on the world markets in the near future. We will also present our analysis of the causes and our predictions as to what the future will be for the countries involved. The paper will first look at the causes behind the crash. We can see that the main factors include current-account imbalances, financial over-lending, banking problems, extremely open economies, and a list of other factors. After we look at the causes behind the crash, we will give an analysis of how to avoid these problems in the future and what the repercussions will be in the Asian and Global markets. And at the end of the paper will be our conclusions (including how this has helped to better prepare us in the area of International Financial Management). The countries affected by the 1997 Asian crisis include the following:1.Korea2.Indonesia3.Malaysia4.Philippines5.Thailand6.China7.Taiwan8.Hong Kong (city-state)9.Singapore(city -state)IntroductionThe Asian economic crash of 1997 surprised more than a few people. Ever since the period after World War II, the Asian economies had been following an economic model developed by the Japanese. This model favored export markets, domestic investment, and lower savings vs. higher investment (current account imbalance) to list a few. This model saw strong, consistent growth in the GDP of the countries in the time that they used the model. Since 1960 the region's top performers---Japan, Hong Kong, South Korea, Singapore, Taiwan, Indonesia, Malaysia and Thailand---grew more than t...
