30 year run of high growth rates. The crisis has caused Asian currencies to fall 50-60%, stock markets to decline 40%, banks to close, and property values to drop. The crisis was brought on by currency devaluations, bad banking practices, high foreign debt, loose government regulation, and corruption. Due to East Asia's large

impact on the world economy, the panic in Thailand, Indonesia, Korea, and other Asian countries has prompted other countries to worry about the affect on their own economies and offer aid to the financially troubled nations (Sanger 1).

The East Asian crisis has affected almost all of the Asian ations, but the three hardest hit countries are Thailand, Indonesia, and South Korea. The panic began in Thailand in May of 1997 when speculators, worried about Thailand's slowing economy, excessive debt, and political instability devalued the baht as they fled for

market-driven currencies like the American dollar. Indonesia's economy

recipient countries reform their economies. Some of the measures the

Since the financial tumult causes instability in the world market, several solutions have been proposed designed to restore the health of the Asian economy. The International Monetary Fund is offering $60 billion in aid packages to Thailand, Indonesia, and South Korea (Lacayo 1). The aid will be used for converting short-term debt to long-term debt and to keep currencies from falling lower in the world market (Passell 2). Lower currency values make repaying loans to other nations more difficult (Sanger 1

efficient government. Considering the size of Asias contribution to the world economy, a rapid recovery will be greatly anticipated.

Hopefully these market reforms will allow East Asia to improve its economic outlook. Since most of the Asian nations have balance budgets, low inflation, cheap labor, pro-business governments, and high savings rates, the long-term outlook for these countries is very good (Marshall 1). The financial crisis, instead of

Some common words found in the essay are:
East Asia, Asia Asian, Korea Lacayo, South Korea, Philippines Japan's, Malaysia Philippines, Thailand Indonesia, Korea Asian, East Asian, Monetary Fund, thailand indonesia, south korea, east asia, indonesia south korea, asian economies, 1 aid, panic thailand, stock markets, world economy, thailand indonesia south, foreign debt, indonesia south,
Approximate Word count = 695
Approximate Pages = 3 (250 words per page double spaced)