Asian Financial Crisis 1997
The crisis started in Thailand. Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency.Thai government to float the baht, cutting its peg to theU.S. dollar. Indonesia, South Korea and Thailand were the countries most affected by the crisis. Hong Kong, Malaysia, Laos and the Philippineswere also hurt by the slump. The People’s Republic of China, Pakistan, India, Taiwan, Singapore, Brunei and Vietnam were less affected, although all suffered from a loss of demand and confidence throughout the region.
Russian Finacial Crisis: 1998
The following was the reasons for the Russian financial crisis
- Declining productivity,
- an artificially high fixed exchange rate between the ruble and foreign currencies
- Chronic fiscal deficit were the background to the meltdown.
- The economic cost of the first war in Chechnya that is estimated at $5.5 billion (not including the rebuilding of the ruined Chechen economy)
- External shocks,
- the Asian financial crisis that had begun in 1997
- declines in demand for (and thus price of) crude oil and nonferrous metals, severely impacted Russian foreign exchange reserves.
- Political crisis when Russian president Boris Yeltsin suddenly dismissed Prime Minister Viktor Chernomyrdin and his entire cabinet
- Russian stock, bond, and currency markets collapsed as a result of investor fears that the government would devalue the ruble, default on domestic debt, or both.
- Government debts on wages continued to grow and workers went on strike
Russia bounced back from the August 1998 financial crash pretty fast because the world oil prices rapidly rose during 1999–2000 (just as falling energy prices on the world market helped to deepen Russia’s financial troubles), so that Russia ran a large trade surplus in 1999 and 2000.
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