Kaminsky, G. Francis X. In Thailand, the financial crisis has resulted in adverse impacts on economic and social systems more seriously than anyone could anticipate. It also allows you to accept potential citations to this item that we are uncertain about. This paper analyzes the links between banking and currency crises. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter.
1997 Asian financial crisis
What Was the Asian Financial Crisis?
What Is a Currency Crisis?
But unlike the pre-crisis days, it did not appear to be a free float, but a managed float, like the Singapore dollar. Unlike a currency devaluation as part of a trade war, a currency crisis is not a purposeful event and is to be avoided. On 14 May and 15 May , the Thai baht was hit by massive speculative attacks.
Foreign investment may have been at least partially speculative, and investors may not have been paying close enough attention to the risks involved. Retrieved 30 June However, Thailand lacked the foreign reserves to support the USD—Baht currency peg, and the Thai government was eventually forced to float the Baht, on 2 July , allowing the value of the Baht to be set by the currency market. Echoing these concerns were those who saw the crisis as a function of systemic factors.