What caused the Asian crisis of 1997-1998: the economic mismanagement of the Asian countries, international financial contagion, close relationships “friends” among local politicians and capitalists? This case study examines how the crisis started in Thailand and spread in an event of that person or of financial authorities in Asia or Western economists had anticipated series. The crisis raises questions about how financial institutions and investment funds managed international equity investment jurisdiction. It raises questions about the effectiveness of the overall reform of the International Monetary Fund was and how much the IMF has acted in the interests of Wall Street rather than developing countries. And the crisis raises questions about the political development of countries in Asia: Is it a too close relationship of “cronyism” between politicians and owners of large banks or companies to pave the way for the crisis?
by
Huw Pill,
Rafael Di Tella,
Jonathan Schlefer
Source: Harvard Business School
21 pages.
Date of publication October 31, 2008. Prod #: 709004-PDF-ENG
Asian Financial Crisis: 1997-1998 (Short) Case Solution