To what extent was the Asian financial crisis predictable? Discuss the current situation in the region.

... Harpal Chima 13A Economics & Business Studies To what extent was the Asian financial crisis predictable? Discuss the current situation in the region Market forces are natural effects within the economy, the trade cycle is a clear indication that shows that the economy is not always booming there are also periods where by recessions and slumps will cause crises to occur. Over the past century the world has been hit by these recession periods such as during the 1930's when the world was under by the Great Depression, this also occurred in the 1990's when Asia was hit by the 'Asian Financial Crisis'. The Asian financial crisis occurred in 1997, this was the aftermath of a boom period when confidence was high, a lot of countries were borrowing a lot of capital from foreign nations and also currencies were extremely overvalued. The occurrence of the crisis is based upon two underlying elements where

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