Why Did the Afc Take Many by Surprise

In: Business and Management

Submitted By JuzFlo
Words 1103
Pages 5
FINS5522 - Emerging Financial Markets
Essay Assignment|
Week 4 (11th August 2010)

Essay Question: Why did the Asian Financial Crisis (AFC) take many by surprise? Explain the major contributing factors that caused the crisis (and their effects), and discuss the lessons that can be learned in relation to preventing and/or responding to future crises.

The Asian Financial Crisis (AFC) of 1997 was a period of financial turmoil and volatility that spread across Asia. Prior to July 1997, most of the South East Asian currencies were tied to the US dollar. The crisis began primarily in Thailand when the Thai baht came under pressure that its value would not hold. The pressure on the Thai baht caused a widening of the Thailand’s Current Account Balance (CAD) and the using up of Thailand’s foreign reserves. This forced the Thai government to float its currency and lead to its devaluation. Real estate and real asset value began to fall and foreign investors began pulling out of South East Asia, triggering the financial crisis that would spread across Asia. The next section of this paper will attempt to answer questions of why the AFC was unanticipated by so many economists and experts. It will also attempt to address the major contributing factors that lead to the AFC and in turn its effects. Lastly this paper will conclude with the lessons that could be learnt from one of the most shocking currency crises of recent times.

Upon careful reflection, many experts (Krugman 1998; Radelet & Sachs 1998; Stein 2004) have asked how such a crisis came as such a surprise to these Asian economies. Stein (2004) has pointed out that the traditional warning signs that signaled such currency crises such as that of Latin America in the 1980s were missing in South East Asia. High growth continued throughout most of South East Asia, there was a lack of uncertainty in equity markets…...

Similar Documents

Why Did I Get Married

...Why Did I Get Married In: Film and Music Why Did I Get Married Tyler Perry “WHY DID I GET MARRIED” is a must see movie for married couples or just couples everywhere period. The four couples in the movie encounter realistic Complications normal couples encounter on a daily basis. Why Did I get married is about the difficulty of maintaining a solid relationship in modern times. Eight married college friends plus one other non-friend (all of whom are having achieved middle to upper class economic status) go to Colorado for their annual week-long reunion, but the mood shifts when one couple's infidelity comes to light. Secrets are revealed and each couple begins to question their own marriage. Over the course of the week, the couples battle with issues of commitment, betrayal and Forgiveness and examine their lives as individuals and as committed couples. Tyler Perry's film explores the resultant emotional impact that fidelity and love upon the constitution of marriage. The couples In the Movie “Why Did I Get Married” shared many of the same values as far as love and willing to work on their marriage and not just give up on it. Even through each couple had their individual issue in their marriage they all shared the same problems one form of DOMESTIC VIOLENCE, lack of COMMUNCATION and TRUST; so that would make you want to question their marriage. DOMESTIC VIOLENCE SEXUAL So when looking at the characters Terry (Tyler Perry) and Diana (Sharon Lean) whom both......

Words: 352 - Pages: 2

Why Did I Get Married

...Tyler Perry “WHY DID I GET MARRIED” is a must see movie for married couples or just couples everywhere period. The four couples in the movie encounter realistic Complications normal couples encounter on a daily basis. Why Did I get married is about the difficulty of maintaining a solid relationship in modern times. Eight married college friends plus one other non-friend (all of whom are having achieved middle to upper class economic status) go to Colorado for their annual week-long reunion, but the mood shifts when one couple's infidelity comes to light. Secrets are revealed and each couple begins to question their own marriage. Over the course of the week, the couples battle with issues of commitment, betrayal and Forgiveness and examine their lives as individuals and as committed couples. Tyler Perry's film explores the resultant emotional impact that fidelity and love upon the constitution of marriage. The couples In the Movie “Why Did I Get Married” shared many of the same values as far as love and willing to work on their marriage and not just give up on it. Even through each couple had their individual issue in their marriage they all shared the same problems one form of DOMESTIC VIOLENCE, lack of COMMUNCATION and TRUST; so that would make you want to question their marriage. DOMESTIC VIOLENCE SEXUAL So when looking at the characters Terry (Tyler Perry) and Diana (Sharon Lean) whom both have successful careers a beautiful daughter what couple can ask for......

Words: 1465 - Pages: 6

Why Take Online Courses

...When deciding whether or not to take online courses, there are three important factors that must be considered; dedication, determination, and motivation. It can be difficult to balance life’s daily chores and because of this anyone considering online courses must be ready to make sacrifices. Life can always get in the way and you must be able to decide what is more important. Online courses require, at the minimum, a few hours each day without distraction. You must find something to keep yourself motivated; be it a promotion at work or simply having a diploma. Determination is a must in order to get the job done as it is very easy for things to fall apart. It can become extremely stressful balancing work, home, and school. It is also difficult to motivate yourself to “attend” school without a set schedule which is why a daily regimen must be establish and adhered to. Online courses aren’t necessarily easier than classroom courses; you get to wear pajamas but you lack direct contact with a professor or with someone else of experience. If you are not easily motivated or is a visual learner that requires direct contact with a professor, online courses may not be recommended. Online courses are recommended for dynamic learners who have the dedication, determination, and motivation to get the job done. There are many pros and cons for taking online courses. Here are just a few of the pros: not sitting in a classroom, not being late for class, reduced costs, and the ability to...

Words: 612 - Pages: 3

Why Did Icesave Fall?

...aspects of the payout by the UK and the Dutch authorities of the deposit guarantees and whether the Icelandic government was liable to cover the minimum deposit guarantees. On this basis, formal negotiations between Iceland, the UK and the Netherlands started in February and were concluded in June 2009. Under the Agreements reached on 5 June 2009, the Icelandic Deposit Guarantee Fund would take a state-guaranteed loan from the UK and the Netherlands to repay £2.35 and €1.33 billion respectively; the total amount covered by the minimum deposit guarantee. After one of the longest parliamentary debates in the history of the Icelandic parliament, the Icesave Act was approved in August 2009 with a number of preconditions which aimed at securing Iceland’s debt sustainability and allowing Iceland to restore its economy and financial system.[2] But the President of Iceland decided not to sign the new law. A decision on whether the revised act should enter in force should be made by the public in a national referendum. Due to the frustration of ordinary citizens in Iceland who did not want to pay the price for the behavior of irresponsible bankers, 93.2% of those who voted said no to the Icesave Act of 30 December 2009. The EFTA Surveillance Authority (ESA) issued a Letter of Formal Notice and came to the conclusion that by failing to ensure payment of the minimum amount of compensation to Icesave depositors in the UK and the Netherlands Iceland has failed to comply......

Words: 1424 - Pages: 6

Why Did Chartism Fail?

...Why did Chartism Fail? * Chartism failed because of economic factors – it was simply a ‘knife and fork question’ * Chartism failed because of the inherent weakness of the movement and internal divisions within the movement * Chartism did not really fail in the truest sense of the word – it was defeated by the state Economic Factors Some historians have argued that improving economic conditions ensured the Chartist movement faded after 1848 – there had been worsening economic conditions in the period after 1837 which gave rise to the chartist movement. After this period, the lessening economic instability, growing prosperity and rise in living standards after 1848 removed basis for widespread discontent. In economic prosperity – Chartism could no longer be sustained. The interpretation has been questioned in recent decades – economic historians began questioning how stable the British economy really was during this time in ‘Mid-Victorian Boom’ (1850-73) e.g. Cunningham – disagrees as he believes the economy continued to fluctuate. A series of subtle economic changes undermined the movement after 1848 and led to the movement’s eventual fall. 1. Development of Railways – Provided stimulus to industries; iron, steel and coal. Economic growth less narrowly based than in period before 1850 when textiles had been leading sector 2. Factory Legislation – Legislation redefined management practices and relationships in the workplace; 1850s-60s saw......

Words: 1639 - Pages: 7

Why Did Yannis Fail

...a month of working for this small company, she, the author was able to get promoted up from a mere little employee to the assistant manager. However, through the three and a half years that she worked at this company she realized that there were many down falls, and the lack of an actual person in charge, ultimately destroyed the company and it went out of business. Being prepared, understanding the five functions of management are important to the success of a business, however if the functions of management are lacking there will be a downfall breaking of command and the eventual closing of a restaurant. Planning Yanni’s had a mission of brining to Hartland true Greek style Gyro’s, handmade juicy burgers, hand battered fish fry’s, and some of the best custard in Wisconsin. Though the mission was noble and the vision great, there were some serious pieces missing from the picture. Yanni’s was similar to many of the other Gyro and custard stands here in Wisconsin. However, it had two things going for it: it had great custard and authentic traditional Gyro meat. However, it lacked a true leadership structure and inexperienced business owners. Though, I was not involved in the planning and set up of this particular restaurant, I did start within a month of this company being open. The company from the outside looked very sound, well planned, and greatly loved, however, once I began to poke around and learn the ins and outs of this company it was easy to see that there was......

Words: 3701 - Pages: 15

Why Did Daisy Stay

...Buchannan dinner table??? The Great Gatsby is a novel by F. Scott Fitzgerald that tells the story of the ‘great’ Jay Gatsby, but along with his story we learn about Daisy Buchannan the love of his life and their torrid love affair. It seemed as though Daisy was ready to leave her husband Tom in Chapter VII (Fitzgerald pg. 134) but by the end of the novel Daisy has chosen to run away to New York with Tom leaving Gatsby behind without saying anything. The novel did not go into any detail as to why Daisy chooses to stay with Tom, but in one scene after all of the chaos form the brief trip to the city we see Tom and Daisy sitting at the kitchen table over a cold dinner and some ale talking, the reader is not told what is said (Fitzgerald pg. 146). The reader can infer that several things were discussed at the dinner table that evening to make Daisy leave Gatsby behind, such as Tom’s old money and ability to provide, Gatsby’s new money and his reputation, as well as Daisy’s herself. There are several good reasons why Daisy Buchannan stays with her husband Tom instead of leaving him for Gatsby. One of the reasons that she could’ve chosen to stay is the same reason that she chooses to marry Tom in the first place; he was a safe secure choice. Tom came from money, old money, and to someone like Daisy who was also of old money this was a way to a secure future without worry. The reader is made aware of Tom’s wealth is Chapter 4 when Jordan Baker, Daisy’s dearest friend is......

Words: 1113 - Pages: 5

Why Did I Enroll in College

...Why Did I Enroll in College I often ask myself why. Why did you decide to go to college? Well first off, I have just started my family. So therefore, I am going to need to get my future set straight in order to support this family. What better way than to enroll in college? In this essay I will briefly explain why I enrolled in college. Also, the qualities I need to use in order to be successful in college. Qualities that I am going to use will definitely give me nothing but the best, and me personally I strive for the best. While in college I would love to gain the most out of it. The last thing I plan on talking about is certain obstacles I will have to overcome in order to be successful in receiving my degree. Why did I enroll in college? My reasons for enrolling in college are pretty simple. First things first, I really want to work towards getting my degree and become a teacher. I have wanted to be a teacher all my life. Honestly I don’t know what made me want to become a teacher, but it has stuck with me since I first decided what I wanted to be. I have the up-most respect for teachers, due to the fact that they put up with so much from students. So I believe I need to put forth the effort and take over for someone who is ready to get out of the teaching life. Another reason I decided to enroll in college, I really want to experience new things. This is a never ending issue; I am the type of person who constantly wants to experience something new. I joined the......

Words: 1139 - Pages: 5

Why Did the Spanish Armada Fail?

...There are many reasons why the Spanish Armada failed but one of the most important reasons is simply because they were not organized and prepared. They came into battle being arrogant. The Spanish were not prepared for the worst thing that could happen. The English planned what they were going to do step by step. They surprised the Spanish by waiting for them at sea instead of having a land battle with them. All of this history is very significant because it shaped how England is today because if the Spanish Armada had won, England would be totally different to how it is today and this essay is going to be telling you exactly what happened and why the Spanish Armada failed. One of the main reasons of why the Spanish Armada failed was because of their planning and preparation. The English were fully prepared because they had 16,000 experienced sailors on board and 76,000 soldiers waiting on land. The English fleet consisted of 177 ships which were small and less than 100 tons. Also 34 of them were Royal Warships so they were ready for anything. On the other hand the Spanish armada was equipped with enough ammunition, food, water for 4 weeks. This was quite a big problem because this was much longer than they expected to be at sea. The Spanish Armada had 16,000 sailors and 34,000 soldiers at sea. Philip believed that God was on the side of the Roman Catholics so he has 180 priest monks on board so they could have daily masses. Another reason why the Spanish Armada failed was...

Words: 804 - Pages: 4

Why Did Obama Win the 2012 Election?

...Why did Obama win the 2012 election? The 2012 US election saw Democrat Obama come up against Republican Romney. Obama was the favourite throughout and in the end won with 332 electoral votes, with Romney only gaining 206. There were several reasons as to why Obama won the election, such as the October surprise, a majority of Hispanic and Women votes for Democrat, and Romney as a man himself. However the main one can be considered Obama being an incumbent President, giving him a huge benefit in terms of the public. Obama being an incumbent President was a massive benefit for the election as this gave Obama a foot to stand on and was also able to attack Romney from the start. History has proven the benefit of being an incumbent President, for example Johnson in 1964, Nixon in 1972, Reagan in 1984, Clinton in 1996 and Bush in 2004 were all re-elected as incumbents. The benefit of being incumbent is that you have already shown leadership in the past four years, and can be very popular with the public. Therefore Obama is able to state his achievements and show his leadership when campaigning, such as stating that unemployment was less than 8% for the first time in four years during the campaign, gaining him support, whereas Romney had not been proven and had no major achievements to support him. Therefore more ‘undecided voters’ listened more to Obama, meaning being an incumbent President gained him more popularity and support during the campaign. Being incumbent was also......

Words: 1353 - Pages: 6

Why Did It Take Nixon so Long to Withdraw from Vietnam?

...US would have accepted ground troops staying in South Vietnam in 1969 when initially proposed. The domestic situation in the US did not help the situation of withdrawal in Vietnam. Vietnam was the first TV war, and with the growing peace in the USA with the Civil Right movement being an ongoing occurrence, there was a lot of anti-war protests. To start with these didn't threaten Nixon, but when the Tet Offensive was broadcast on TV and the USA saw the US embassy being attacked there was no longer a way to conceal that the US was failing. The anti war propaganda that was occurring in America made the North Vietnamese know that soon the support wouldn't be there for the USA to continue with the war, so they would negotiate, therefore, the North Vietnamese continued to rack up US death tolls as best as they could to create more tensions at home. The news of My Lai Massacre and mass bombings in North Vietnam ignited many protests in the 1970’s, such as Kent State which led to the Kent State massacre. When the Pentagon Papers were released in July 1971, anti-war sentiment in Congress strengthened as congress voted 17 times on measures to restrict the president's actions in South-East Asia. In conclusion, it was a prolonged withdrawal from Vietnam as Nixon did not want Vietnam to look like a defeat and wanted it to appear as a withdrawal as he did not want to the Cold War tensions to increase therefore, he had to make sure to not get any more involved. Ultimately, there was......

Words: 1149 - Pages: 5

Why Did the Spanish Armada Fail>

...All the Spanish had to do was get to the Low Countries pick up the armies, take them to Kent, March to London and dismiss Queen Elizabeth I of her throne. This plan was very simple, but could have been deadly if it had worked. The main reasons for it not working out were the communication problems. The messenger ships travelled the same speed, as the Armada so they were nearly useless and the communication between Parma’s army and the Armada were not good. On top of all of this the Armada had received message that Parma’s army was not ready when they were at Calais, however modern research shows that the army would have been ready in just 5 hours but the Armada didn't know this because of Parma's plan to keep it a secret that the invasion army was ready to give the English a surprise attack... unfortunately it didn't just fool the English, it fooled the Spanish as well. Communication was not the only problem the planning was put together so quickly, King Philip hadn't thought of the area at all. The coast where Parma's army were waiting the coast was very shallow and not a very steep gradient at all. The sand was less than 20 metres deep for up to a mile out to sea and the Armada’s ships needed at least 20 metres. This meant that the ships couldn't pick up the army. That problem was soon solved when the army managed to get lightweight barges to transport the army across. A new problem arose, how did they get across to the Armada without the Dutch fleet seeing them and......

Words: 332 - Pages: 2

Why There Still so Many Jobs

...Journal of Economic Perspectives—Volume 29, Number 3—Summer 2015—Pages 3–30 Why Are There Still So Many Jobs? The History and Future of Workplace Automation† David H. Autor T here have been periodic warnings in the last two centuries that automation and new technology were going to wipe out large numbers of middle class jobs. The best-known early example is the Luddite movement of the early 19th century, in which a group of English textile artisans protested the automation of textile production by seeking to destroy some of the machines. A lesser-known but more recent example is the concern over “The Automation Jobless,” as they were called in the title of a TIME magazine story of February 24, 1961: The number of jobs lost to more efficient machines is only part of the problem. What worries many job experts more is that automation may prevent the economy from creating enough new jobs. . . . Throughout industry, the trend has been to bigger production with a smaller work force. . . . Many of the losses in factory jobs have been countered by an increase in the service industries or in office jobs. But automation is beginning to move in and eliminate office jobs too. . . . In the past, new industries hired far more people than those they put out of business. But this is not true of many of today’s new industries. . . . Today’s new industries have comparatively few jobs for the unskilled or semiskilled, just the class of workers whose jobs are......

Words: 13546 - Pages: 55

Why Did Hitler Loose the War

...Many aspects of World War Two have been the cause for debate for many years. Not only has the loss of Germany been discussed at great lengths, also have the reasons. It can be said that although much thought and fact has been taken into consideration when discussing Germany's loss as a whole; not as much attention has been given to that of the loss of Hitler as a man and a leader. Germany's loss of World War Two was not only a loss on behalf of the country as a whole, but a personal loss to Hitler. Why was this such a loss to Hitler? Why did he experience a personal downfall? How did he create his own demise? There are many reasons as to why this is so, but the fact that his ideas were behind the war is a reason why it was not only Germany's downfall, but Hitler's also. He was a man of influence in Germany; the timing was right, and he was in the hot spot. He was the leader of a highly populated European country, he wanted more for himself and for his people. He had ideas, he made decisions based on them. What were his ideas? What was behind them, what did he intend them to accomplish? Where did they lead, and how did this lead to a countrywide and worldwide loss, and even a personal loss? In discussing some of Hitler's ideas such as, lebensraum (which ties in with treaty issues), purity of the state of Germany and a zeal for his people and the desire to make changes for the betterment of his country; it will be seen that although his ideas might have been initally pure, they...

Words: 1578 - Pages: 7

Why Did I Come to College?

...Omunique Jones Narrative rough draft Why did I come to college? Professor Bess September 22, 2014 Why did I come to college? I never thought in a million years I would make it to college. Growing up was hard for me and being the baby of the family I had a lot of pressure on me because everybody wanted the best for me. So many people come to college for many different reasons. I decide to come to Benedict to better my education and become successful in life. I want to be happy with what I do and get paid for doing it. So many people say that college life is a wonderful experience because its different from high school, people will see the mature side of you, and meet friends from across the world. But getting to this point wasn't easy. Freshmen year in high school was difficult for me. Already knowing that high school is a stepping stone to getting my diploma, still I never really took it seriously. I use to horse around, hang with the wrong crowd, and tried to be fast in the tail. In the mist of all that my grades start slipping, I didn't care no more, and most off all I was thinking about dropping out of school. But through it all, if it wasn't for my grandma I would never have finished high school. Coming home to my grandmother everyday made me smile because every day I walk from school she would always wait on the porch everyday just to see me and my day was complete. My grandma always use to tell me that I was special and she know that......

Words: 911 - Pages: 4

Montana Of 300 - Pray For The Devil | Episode 033 vostfr | [HorribleSubs] Sword Art Online - Alicization - 10 [1080p] mkv