Southeast AsiaEconomic Crisis

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Southeast AsiaEconomic Crisis by Mind Map: Southeast AsiaEconomic Crisis

1. Reason

1.1. The Thai Bath was pegged to the USD

1.2. Devaluation of Thai Bath.

1.3. Government aquired foreing debt and became bankrupt

1.4. Domino effect on currency stock markets and asset prices devaluation.

2. South Korea & Thailand

2.1. Recieved IMF aid

2.2. Decrease on stock market prices.

2.3. Before crisis both economies had large % of economic growth.

2.4. Devaluation of currencies

2.5. Lower credit ratings

3. Malaysia & China

3.1. Both currencies were pegged towards the USD

4. IMF Recomendation

4.1. Created Rescue Packages for currency, banking and financial system reforms.

4.2. Supervised all financial activities.

4.3. Reduce government spending.

4.4. Transparent financial systems

5. Yolanda Moska A01017095, Diana Doria A01175689, Patrick Langer A01674195