Excuse me, the causes and consequences of the 1997 and 1998 Asian financial turmoil

The Asian financial turmoil is as follows:

Asian financial crisis.

Refers to a worldwide financial turmoil that occurred in 1997. On July 2, 1997, the Asian financial crisis swept through Thailand. Soon, the storm spread to Malaysia.

Singapore, Japan, South Korea, China, etc. The currencies of Thailand, Indonesia, South Korea and other countries have depreciated sharply, while causing a large number of major Asian currencies.

The Asian financial turmoil was caused by the economic situation of Asian countries at that time.

Japan, South Korea, and other countries are export-oriented economic countries, and they are very dependent on the world market, and it is inevitable that the shaking of the Asian economy will affect the whole body.

Background to the financial turmoil:

At that time, Japan, the world's second-largest economy, was affected by the housing crisis and its economy was at a bottom, while other developing countries were at a bottom.

At that time, the dependence on Japan was very high, so the Asian economy was already in a stage of stagflation or even decline. In order to attract foreign capital, some countries have maintained a fixed exchange rate on the one hand and expanded financial liberalization on the other, providing opportunities for international speculators.

Chinese scholars generally believe that it can be divided into several aspects, such as direct triggers, internal basic factors and world economic factors.

1. Direct triggers include:

1) The impact of upstream capital in the international financial market.

2) Improper foreign exchange policies in some Asian countries. Financial liberalization has provided an opportunity for international speculators.

3) In order to maintain a fixed exchange rate system, these countries have used their foreign exchange reserves to cover their deficits for a long time, leading to an increase in external debt.

4) The structure of the external debt of these countries is irrational. In the medium and short term, there are many debts, and the ability to regulate and control is insufficient.

2. The internal basic factors include:

1) Overdraft economic growth and expansion of non-performing assets.

2) The market system is not mature. One is excessive intervention in the allocation of resources, and the other is the imperfection of the financial system, especially the regulatory system.

3) The defects of the "export substitution" model. The "export substitution" model is an important reason for the economic success of many Asian countries. However, at a certain stage of development, domestic production costs will increase and exports will be suppressed; the formation of mutual squeezing between countries; The advantage of cheap resources cannot be sustained.

3. The main factors of the world economy include:

1) The negative impact of economic globalization. The world economy is becoming more and more interconnected, and the conflict of interests between countries is intensifying.

2) The international division of labor, ** and monetary system, which is not good for third world countries. Developed countries are able to buy primary products at low prices and monopolize ** to market their products. The global financial system and institutions also favor financial powers.

Among the many factors, the factor of the internal economic structure of Asian countries is the main one. As Soros said, if he doesn't do this, others will do it.

The real cause of the outbreak of the Asian financial crisis in 1997 is finally known today.

Thailand's economic development itself has had some problems.

The 1997 Asian financial crisis.

The Asian financial crisis refers to a worldwide financial turmoil that occurred in 1997. On July 2, 1997, the Asian financial crisis swept through Thailand. Soon, the storm spread to Malaysia, Singapore, Japan, South Korea, China and other places.

The currencies of Thailand, Indonesia, South Korea and other countries have depreciated sharply, while causing a large number of major Asian currencies. The impact on foreign trade enterprises in Asian countries has caused the closure of many large enterprises in Asia, the loss of workers' jobs, and the social and economic depression. It shattered the scene of rapid economic development in Asia. The economies of some major Asian economies have begun to slump, and the political situation in some countries has also begun to be chaotic.

Thailand, Indonesia and South Korea were among the countries hardest hit by the financial turmoil. Singapore, Malaysia, the Philippines and Hong Kong were also affected, while Chinese mainland and Taiwan were almost unaffected.

Chinese name Asian Financial Storm.

Foreign name: 1997 Asian Financial Crises

Start time. 2 July 1997.

Country of origin: Thailand.

Causes: the impact of U.S. economic interests and policies, etc.

Cause of the outbreak. The economic shape of Asian countries leads to; the impact of U.S. economic interests and policies; George Soros personally and some of the factors that support his capitalist clique; As a result of the economic pattern of Asian countries, Singapore, Malaysia, Thailand, Japan, South Korea and other countries are export-oriented countries, and they are very dependent on the world market. The economic turmoil in Asia will inevitably affect the whole body.

Taking Thailand as an example, whether the Thai baht should be bought and sold in the international market is not dominated by **, and Thailand itself does not have enough foreign exchange reserves, and the country's economy is vulnerable in the face of speculation by financiers. The economy determines politics, so the political situation in Thailand is also turbulent.

Analysis by domestic scholars: direct triggers, internal underlying factors and world economic factors.

Development stage. Phase 1.

On July 2, 1997, Thailand announced that it would abandon the fixed exchange rate system and implement a floating exchange rate system, triggering a financial turmoil throughout Southeast Asia.

On the same day, the exchange rate of the Thai baht against the US dollar fell by 17%, and foreign exchange and other financial markets were in chaos. Under the influence of the fluctuation of the Thai baht, the Philippine peso, the Indonesian rupiah, and the Malaysian ringgit have become the targets of international speculators.

In August 1997, Malaysia abandoned its efforts to defend the ringgit. The Singapore dollar, which has always been strong, has also taken a hit. Indonesia was the last country to be "infected", but it was the hardest hit.

In late October 1997, international speculators moved to Hong Kong, an international financial center, and the spearhead was directly aimed at Hong Kong's linked exchange rate system. The Taiwan authorities suddenly abandoned the exchange rate of the new Taiwan dollar, depreciating in one day, and increasing the pressure on the Hong Kong dollar and Hong Kong**.

On October 23, 1997, Hong Kong's Hang Seng Index fell sharply; On the 28th, ** point, fell below the 9,000-point mark. In the face of the fierce attack of international financial speculators, the Hong Kong Special Administrative Region** reiterated that it will not change the current exchange rate system, and the Hang Seng Index rose to the 10,000-point mark.

In mid-November 1997, a financial turmoil also broke out in South Korea in East Asia, and on the 17th, the South Korean won paired.

In June 1997, a financial crisis erupted in Asia, and the development of the crisis was very complicated. By the end of 1998, it could be broadly divided into three phases: from June to December 1997; January 1998 to July 1998; July 1998 to the end of the year.