1997 Asian Crisis Lessons Lost Jomo Kwame Sundaram

After months of withstanding speculative attacks on its national currency, the Thai central bank let it ‘float' on 2 July 1997, allowing its exchange rate to drop suddenly. Soon, currencies and stock markets throughout the region came under pressure as easily reversible short-term capital inflows took flight in herd-like fashion. By mid-July 1997, the currencies of Indonesia, Malaysia and the Philippines had also fallen precipitously after being floated, with stock market price indices following suit. Most other economies in East Asia were also under considerable pressure. In November 1997, despite South Korea's more industrialized economy, its currency also collapsed following…