The Different Fate of Thailand and Hong Kong During 1997 Asian Financial Crisis
The 1997 Asian financial crisis was a disaster that obsessed much of Southeast Asian countries. The financial crisis began in July 1997, and rose to worldwide economic meltdown due to financial contagion. Thailand, Indonesia and South Korea were the most affected by the financial crisis. Hong Kong, Malaysia, and the Philippines also had abundant negative effects by the financial disaster. China, Singapore, and Vietnam were less affected, however, they also suffered from the crisis, which leads the citizens lost their faith of the economy at that period.
Speculation to the baht currency at what level, what the future will present situation to judge? Soros thinks the baht's exchange rate is high, why? This and the Thai baht peg to the dollar exchange rate regime and Thailand when the economic environment are closely related. Foreign exchange transactions, the most important thing is that the correct projections for the shape of the foreign exchange rate, and a correct prediction analysis of the factors that have concluded that depend on the impact of foreign exchange. There are many factors that cause the foreign exchange market fluctuations. For example, when the European central bank raised rates, the euro will appear a certain degree of rebound. When Japan released economic data showed that its economy has not significantly improved, most the yen will fall. Superficially, factors affecting exchange rates seem to be quite complicated, but in the aggregate, and the course of the exchange rate is determined by supply and demand.
Southeast Asia financial crisis started in Thailand currency crisis, and Thailand currency crisis has been brewing as early ...
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...currency crisis to further expand, and at the same time to uphold and protect Hong Kong's linked exchange rate system.
The Hong Kong government eventually bought stocks in different companies, which were worth about $15 billion in total, and became the largest shareholder of some Hong Kong MNCs, in the end of August. In 1999, the government began to sell these shares by launching the Tracker Fund of Hong Kong. The profit was about $ 4 billion.
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report of the national commission on the causes of the financial and economic crisis in
Mid September 2008 saw a significant change for the Australian economy, with the collapse of the Lehman Brothers triggering the Global Financial Crisis. The Global Financial Crisis was characterised by a tightening in the availability of money from overseas markets and resulting in governments having to intervene to maintain market stability. The Australian economy and its leaders generated considerable discussion about the prospect of a global recession, while most expected the financial crisis would have a major impact on the Australian economy, a factor that was not considered was the immediacy of its effects. The December quarter of 2008, saw business stocks devalue by $3.4 billion, the largest fall on record. In addition, there was a considerable softening in property prices, resulting in many companies/people having too much debt vs. too little wealth. With this, consumer confidence plummeted which in turn deteriorated consumption. Throughout the month of September and into October, the financial crisis spread from the United States to Europe, and all around the global economy, with economies contracting in growth.
Cooke, Lorne. "Review: The Great Crash 1929 by John Kenneth Galbraith." The Journal of Finance. 11. no. 1 (1956): 100-101. http://www.jstor.org/stable/2976547 (accessed October 4, 2011).
The business reason that led for China Noah’s potential currency exposure is the fact that the company wanted to shift its business of procurement of wood to Indonesia. The procurement that was to be moved to Indonesia was to be that of a large portion of raw materials. The company wanted to shift its procurement to Indonesia because the country had abundant wood resources, and since the market of the supply of tight wood was increasing in China every year the company had to look for more, raw materials. The company
The stability of currency values plays a significant role for economic and financial stability. It is not difficult to see the exchange rate fluctuations are widely regarded as damaging. As the movements of the exchange rate have significant and large effects on the trade balance, resource allocation, domestic prices, interest rate, national income and other key economic variables. Then can exchange rate movements be predicted by these fundamental economic variables?
The financial crisis occurred in 2008, where the world economy experienced the most dangerous crisis ever since the Great Depression of the 1930s. It started in 2007 when the home prices in the U.S. Dropped significantly, spreading very quickly, initially to the financial sector of the U.S. and subsequently to the financial markets in other countries.
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Xingzhong, LI Daokui David YIN. "The International Monetary System in the Era of Post-Financial Crisis: What Policy Options Does China Have?[J]." Journal of Financial Research 2 (2010): 005
Free market theories suggest that the exchange rate of a national currency reflects on the judgements of institutional investors, economists, and other financial experts. These points of views reflect the exchange rate movement based on the country?s fiscal and monetary policy. In the case of the Japanese yen, a core currency of the country, which represents the strength of its economy based on the trade policy and other economic
This paper provides an overview of the crisis, outlines the major causes of the crisis, examine alternative solutions to the problem
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Thailand implements a controlled floating exchange rate system, pricing to market forces on the Thai baht, and the Thai central bank would only intervene in the market when necessary, in order to avoid excessive exchange rate volatility to the expected impact of economic policies. At present, the global economic slowdown, domestic demand is not good in Thailand. In order to keep the country's export competitiveness, the Bank of Thailand is more inclined to let the baht weaken.
· Domestic factors cited generally relate to rising wage rates and overvalued exchange rates. Domestic wage rates during 1991-95 rose about 11%, on average or about 5% increase in real wages per year, cited as the key factor in the slowdown in growth of labor intensive exports. The real effective exchange rate of the baht is estimated to have appreciated by about 15% during 1995-97, primarily because of the linkage to the US$, which appreciated against the yen.
Warwick J. McKibbin, and Andrew Stoeckel. “The Global Financial Crisis: Causes and Consequences.” Lowy Institute for International Policy 2.09 (2009): 1. PDF file.