East Asian Financial Crisis Essay Example | Topics and Well Written Essays - 2750 words

East Asian Financial Crisis - Essay ExampleThe intention of this playing field is the East Asian financial crisis of 1997-98 that culminated into one of the most devastating global shocks in the twentieth century. Its far-fetched frame could be compared with nothing less than that of the Great Depression of thirty-something which had entwined the US economy into stagflation. In fact, what prevented the 1930s depression from spreading out throughout the world was the lack of ample networking among various economies. On the new(prenominal) hand, the impact of the East Asian crisis by the end of the millennium was more brutal or burgeoned cod to a close-knitted financial relationship already been accomplished between them. The link was especially prominent among the central economies in South East Asia, bound together by a regional pact ASEAN that aimed at strengthening and shielding at the same time, the international trade position of the East Asian tigers. These economies had s ecured long as well as exemplary economic growth rates that awed many others. When these economies were save a growth in real income equal to 7 percent per annum, the US economy lagged prat at a modest 2 percent. Many nations tried to imitate the fiscal configuration of policies creation framed by these nations. However, the cheap labor that the economies in the South East Asian region were enable with, could not be equaled anywhere else in the world. Hence, it was infeasible for others to carry on their production and supply their outputs at competent prices in the world market.