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The 1997 Asian Financial Crisis was caused by the decision of the Thai government to float the Thai Baht (allowing the value of the Thai Baht to fluctuate according to the foreign exchange market). Before this the value of the Thai Baht was pegged to the US dollar. This decision caused a financial collapse of the Baht. In due course the crisis spread to most of Southeast Asia.

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Asian Financial Crisis

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Page 1: Asian Financial Crisis

The 1997 Asian Financial Crisis was caused by the decision of the Thai government to float the Thai Baht (allowing the value of the Thai Baht to fluctuate according to the foreign exchange market). Before this the value of the Thai Baht was pegged to the US dollar. This decision caused a financial collapse of the Baht. In due course the crisis spread to most of Southeast Asia.

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