- published: 13 Nov 2015
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The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.
The crisis started in Thailand (well known in Thailand as the Tom Yum Goong crisis; Thai: วิกฤตต้มยำกุ้ง) with the financial collapse of the Thai baht after the Thai government was forced to float the baht due to lack of foreign currency to support its currency peg to the U.S. dollar. At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt.
Indonesia, South Korea and Thailand were the countries most affected by the crisis. Hong Kong, Laos, Malaysia and the Philippines were also hurt by the slump. Brunei, China, Singapore, Taiwan and Vietnam were less affected, although all suffered from a loss of demand and confidence throughout the region.
The term financial crisis is applied broadly to a variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in changes in the real economy.
Many economists have offered theories about how financial crises develop and how they could be prevented. There is no consensus, however, and financial crises continue to occur from time to time.
When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run. Since banks lend out most of the cash they receive in deposits (see fractional-reserve banking), it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run renders the bank insolvent, causing customers to lose their deposits, to the extent that they are not covered by deposit insurance. An event in which bank runs are widespread is called a systemic banking crisis or banking panic.
Khan Academy is a non-profit educational organization created in 2006 by educator Salman Khan with the aim of providing a free, world-class education for anyone, anywhere. The organization produces short lectures in the form of YouTube videos. In addition to micro lectures, the organization's website features practice exercises and tools for educators. All resources are available for free to anyone around the world. The main language of the website is English, but the content is also available in other languages.
The founder of the organization, Salman Khan, was born in New Orleans, Louisiana, United States to immigrant parents from Bangladesh and India. After earning three degrees from the Massachusetts Institute of Technology (a BS in mathematics, a BS in electrical engineering and computer science, and an MEng in electrical engineering and computer science), he pursued an MBA from Harvard Business School.
In late 2004, Khan began tutoring his cousin Nadia who needed help with math using Yahoo!'s Doodle notepad.When other relatives and friends sought similar help, he decided that it would be more practical to distribute the tutorials on YouTube. The videos' popularity and the testimonials of appreciative students prompted Khan to quit his job in finance as a hedge fund analyst at Connective Capital Management in 2009, and focus on the tutorials (then released under the moniker "Khan Academy") full-time.
Asian refers to anything related to the continent of Asia, especially Asian people.
Asian may also refer to:
The United States dollar (sign: $; code: USD; also abbreviated US$ and referred to as the dollar, U.S. dollar, or American dollar) is the official currency of the United States and its overseas territories. It is a Federal Reserve Note and consists of 100 smaller cent units.
The U.S. dollar is fiat money. It is the currency most used in international transactions and is the world's most dominant reserve currency. Several countries use it as their official currency, and in many others it is the de facto currency. Besides the United States, it is also used as the sole currency in two British Overseas Territories in the Caribbean: the British Virgin Islands and the Turks and Caicos islands. A few countries use only the U.S. Dollar for paper money, while the country mints its own coins, or also accepts U.S. coins that can be used as payment in U.S. dollars, such as the Susan B. Anthony dollar.
The Constitution of the United States of America provides that the United States Congress has the power "To coin money". Laws implementing this power are currently codified at 31 U.S.C. § 5112. Section 5112 prescribes the forms, in which the United States dollars should be issued. These coins are both designated in Section 5112 as "legal tender" in payment of debts. The Sacagawea dollar is one example of the copper alloy dollar. The pure silver dollar is known as the American Silver Eagle. Section 5112 also provides for the minting and issuance of other coins, which have values ranging from one cent to 50 dollars. These other coins are more fully described in Coins of the United States dollar.
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How a currency crisis in Thailand led to a banking crisis in the 1990s Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/currency-reserves/v/math-mechanics-of-thai-banking-crisis?utm_source=YT&utm;_medium=Desc&utm;_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/currency-reserves/v/speculative-attack-on-a-currency?utm_source=YT&utm;_medium=Desc&utm;_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their ow...
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Asian Crisis” During 1997-98, many of the East Asian tiger economies suffered a severe financial and economic crisis. This had big consequences for the global financial markets, which had become increasingly exposed to the promise that Asia had seemed to offer. The crisis destroyed wealth on a massive scale and sent absolute poverty shooting up. In the banking system alone, corporate loans equivalent to around half of one year's GDP went bad - a destruction of savings on a scale more usually associated with a full-scale war. The precise cause of the crisis remains a matter of debate. Fingers have been pointed at the currency peg adopted by some countries, and a reduction of c...
The causes of the debacle are many and disputed. Thailand's economy developed into an economic bubble fueled by hot money. More and more was required as the size of the bubble grew. The same type of situation happened in Malaysia, and Indonesia, which had the added complication of what was called "crony capitalism".[7] The short-term capital flow was expensive and often highly conditioned for quick profit. Development money went in a largely uncontrolled manner to certain people only, not particularly the best suited or most efficient, but those closest to the centers of power.[8] At the time of the mid-1990s, Thailand, Indonesia and South Korea had large private current account deficits and the maintenance of fixed exchange rates encouraged external borrowing and led to excessive exposur...
A special inside Story show from Kuala Lumpur where we examine how the financial turmoil on Wall Street has affected Asian markets and economies.
The causes of the debacle are many and disputed. Thailand's economy developed into an economic bubble fueled by hot money. More and more was required .
Why did Asian countries fare better during the global financial crisis than during the Asian financial crisis? Developing the Service Sector as an Engine of Growth for Asia Session 1: Why did Asian countries fare better during the global financial crisis than during the Asian financial crisis? by Dr.Arief Ramayandi http://youtu.be/zhshNIG3COo Document: http://bit.ly/18QcFI2 Session 2: Developing the Service Sector as an Engine of Growth for Asia by Dr.Donghyun Park http://youtu.be/1llJkBxq6hs Document: http://bit.ly/1cQ7Qmu
Program on America and the Global Economy Asia Program This year marks ten years since the onset of the Asian financial and economic crisis, a critical event in contemporary economic history that had a profound impact on the people, the economies, and the stability of the Asian region. On May 16, the Asia Program, in co-sponsorship with the Science, Technology, America and the Global Economy Program of the Wilson Center, the Sasakawa Peace Foundation, and the Center for Economic and Policy Research, held an event to re-evaluate the Asian financial crisis of 1997-98. The Asian financial crisis was not only a financial crisis, but also a human crisis and a crisis of globalization. Panelists: Nelson Barbosa Filho, Ilene Grabel, Worapot Manupipatpong, Mark Weisbrot, Robert Wade, Meredith Wo...
Program on America and the Global Economy Asia Program This year marks ten years since the onset of the Asian financial and economic crisis, a critical event in contemporary economic history that had a profound impact on the people, the economies, and the stability of the Asian region. On May 16, the Asia Program, in co-sponsorship with the Science, Technology, America and the Global Economy Program of the Wilson Center, the Sasakawa Peace Foundation, and the Center for Economic and Policy Research, held an event to re-evaluate the Asian financial crisis of 1997-98. The Asian financial crisis was not only a financial crisis, but also a human crisis and a crisis of globalization. Panelists: Nelson Barbosa Filho, Ilene Grabel, Worapot Manupipatpong, Mark Weisbrot, Robert Wade, Meredith Wo...
Faculty of Economics and Business Universitas Gadjah Mada held Academic Presentation by Dr. Sarah Xue Dong (Visiting fellow from Australia National University, Australia), the presentation titled: "Household Risk Coping Strategies: The Role of Self-Employment During the Asian Financial Crisis in Indonesia" Day, date: Wednesday, March 25, 2015 Time: 09:00 AM - 11:30 AM Venue: Kertanegara Room, east wing 2nd floor, FEB UGM
Michel Löwy, cofounder and CEO of SC Lowy, says massive changes such as the Asian financial crisis do not mean something is worse. It just means something has a different value. And that’s where this independent fixed income specialist jumps in to try to rewrite the map.