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Chapter 6: Ten Years After: Implications of the Current Financial Market Turmoil*
The Asian crisis sparked off on July 2, 1997 when the Bank of Thailand floated the Thai baht, under the pressure of substantial and highly volatile capital flows. Few people would have predicted that almost exactly 10 years later, the whole world was engulfed in another financial crisis, except that this time it was triggered by the collapse of Lehman Brothers in September 2008 for excessive leverage in the form of derivatives.
The focus of this chapter is to briefly examine the actions taken by emerging Asia after the Asian crisis of 1997–98 in developing their capital markets and to assess whether Asian economies would be able ...