Research Paper on:
Causes of the Currency Crisis in Asia

Unformatted Sample Text from the Research Paper:
over regulations and restrictions causes the collapse as well as claim that it was under regulations in a developing liberalised economy. There are probably elements of truth in both  of these arguments. However, it is necessary to look at the events and how they led to the crisis. The events were different in each country, but followed a similar  pattern leading to the convergence was characteristic of the crisis. In this paper the focus will be Thailand, but the lessons learnt are universal.  In the years before the crisis the economies of the Southeast Asian economies were booming there was a great level of success lead by the economies we now  refer to as the Tiger Economies. The average rate of growth was 8% per annum in the decades prior to the crash and the effect of the growth was to  bring the original four Tiger economies out of the status of developing countries, Hong Kong, South Korea, Singapore and Taiwan all became classed as developed (Woodall, 1998).  Other economies such as Thailand, Malaysia and Indonesia were also catching up at a rapid rate (Woodall, 1998). With growth such as this there is  demand for the currency of the countries and as such there is an increase in the currency supply. The scenario was one whish was exacerbated by the domino effect as  one currency fell in value it would have an knock on effect on the next and so on (Labbe, 1998). The economies  in the area were very dependant on foreign trade, and as a result they resorted to a devaluation in order to maintain the inflow of foreign for the export trade