Thailand’s economy grew at an average of 9%  per year during 1985-96. Inflation was within the range of 3.4-5.7%.

In 1997 Thailand was hit by massive speculative attack.

In july, Thailand devalued it’s currency relative to dollars. In subsequent months, Thailand’s currency, equity, and property markets weakened further as its difficulties evolved into a twin balance-of-payments and banking crisis.Business-friendly policies and cautious fiscal and monetary management had translated into high rates of savings and investment, supporting GDP growth rates exceeding 5 percent and often approaching 10 percent.

The unfolding crisis in Thailand illustrated how problems in the banking sector could lead to a pullback by foreign investors, setting off a spiral of depreciation, recession, and amplified banking sector weakness.Thailand was the country which was highly affected by the financial crisis.

MEASURES TAKEN TO PREVENT THE CRISIS.

1.the international community mobilized large loans totaling $118 billion for Thailand.

2.Financial support came from the International Monetary Fund, the World Bank, the Asian Development Bank, and governments in the Asia-Pacific region, Europe, and the United States.

3.countries hiked interest rates to help stabilize currencies and tightened fiscal policy to speed external adjustment and cover the cost of bank clean-ups.

4.The Fed also acted as an agent for the U.S. Treasury, including by helping arrange a bridge loan for Thailand in the early stages of the crisis.

Thailand’s economy grew at an average of 9%  per year during 1985-96. Inflation was within the range of 3.4-5.7%.

In 1997 Thailand was hit by massive speculative attack.

In july, Thailand devalued it’s currency relative to dollars. In subsequent months, Thailand’s currency, equity, and property markets weakened further as its difficulties evolved into a twin balance-of-payments and banking crisis.Business-friendly policies and cautious fiscal and monetary management had translated into high rates of savings and investment, supporting GDP growth rates exceeding 5 percent and often approaching 10 percent.

The unfolding crisis in Thailand illustrated how problems in the banking sector could lead to a pullback by foreign investors, setting off a spiral of depreciation, recession, and amplified banking sector weakness.Thailand was the country which was highly affected by the financial crisis.

MEASURES TAKEN TO PREVENT THE CRISIS.

1.the international community mobilized large loans totaling $118 billion for Thailand.

2.Financial support came from the International Monetary Fund, the World Bank, the Asian Development Bank, and governments in the Asia-Pacific region, Europe, and the United States.

3.countries hiked interest rates to help stabilize currencies and tightened fiscal policy to speed external adjustment and cover the cost of bank clean-ups.

4.The Fed also acted as an agent for the U.S. Treasury, including by helping arrange a bridge loan for Thailand in the early stages of the crisis.

Thailand’s economy grew at an average of 9%  per year during 1985-96. Inflation was within the range of 3.4-5.7%.

In 1997 Thailand was hit by massive speculative attack.

In july, Thailand devalued it’s currency relative to dollars. In subsequent months, Thailand’s currency, equity, and property markets weakened further as its difficulties evolved into a twin balance-of-payments and banking crisis.Business-friendly policies and cautious fiscal and monetary management had translated into high rates of savings and investment, supporting GDP growth rates exceeding 5 percent and often approaching 10 percent.

The unfolding crisis in Thailand illustrated how problems in the banking sector could lead to a pullback by foreign investors, setting off a spiral of depreciation, recession, and amplified banking sector weakness.Thailand was the country which was highly affected by the financial crisis.

MEASURES TAKEN TO PREVENT THE CRISIS.

1.the international community mobilized large loans totaling $118 billion for Thailand.

2.Financial support came from the International Monetary Fund, the World Bank, the Asian Development Bank, and governments in the Asia-Pacific region, Europe, and the United States.

3.countries hiked interest rates to help stabilize currencies and tightened fiscal policy to speed external adjustment and cover the cost of bank clean-ups.

4.The Fed also acted as an agent for the U.S. Treasury, including by helping arrange a bridge loan for Thailand in the early stages of the crisis.

Thailand’s economy grew at an average of 9%  per year during 1985-96. Inflation was within the range of 3.4-5.7%.

In 1997 Thailand was hit by massive speculative attack.

In july, Thailand devalued it’s currency relative to dollars. In subsequent months, Thailand’s currency, equity, and property markets weakened further as its difficulties evolved into a twin balance-of-payments and banking crisis.Business-friendly policies and cautious fiscal and monetary management had translated into high rates of savings and investment, supporting GDP growth rates exceeding 5 percent and often approaching 10 percent.

The unfolding crisis in Thailand illustrated how problems in the banking sector could lead to a pullback by foreign investors, setting off a spiral of depreciation, recession, and amplified banking sector weakness.Thailand was the country which was highly affected by the financial crisis.

MEASURES TAKEN TO PREVENT THE CRISIS.

1.the international community mobilized large loans totaling $118 billion for Thailand.

2.Financial support came from the International Monetary Fund, the World Bank, the Asian Development Bank, and governments in the Asia-Pacific region, Europe, and the United States.

3.countries hiked interest rates to help stabilize currencies and tightened fiscal policy to speed external adjustment and cover the cost of bank clean-ups.

4.The Fed also acted as an agent for the U.S. Treasury, including by helping arrange a bridge loan for Thailand in the early stages of the crisis.