The Onset of the East Asian Financial Crisis

In Currency Crises

Edited by Paul Krugman

By Steven Radelet and Jeffrey Sachs

4.1 Introduction

The East Asian financial crisis is remarkable in several ways. The crisis hlt the most rapidly growing economies in the world and prompted the largest financial bailouts in history. It is the sharpest financial crisis to hit the developing world since the 1982 debt crisis. It is the least anticipated financial crisis in years. Few observers gave much chance in early 1997 that East Asian growth would suddenly collapse.' The search is on for …

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