East Asia had been willing to allow non-residents to move money in and out freely and to purchase property. Financial markets had been liberalized to allow investements by locals and foreigners in foreign currency deposits, domestic bonds, and the local stock markets. This kind of liberalization proved extremely attractive to foreign investors who seek liquidity and good short term returns. The Asian currency market attracted speculators who watched the moves of firms, governments and international organizations closely to make short term profits.   

The countries in the East Asian region and the international institutions took measures to stop the fall of the currencies and to stop speculation. The International Monetary Fund (IMF) lent money to members having trouble meeting financial obligations to other members on condition that they implemented economic reforms. There are several other institutions striving for a recovery of the region, such as The Asian Monetary Fund, the Asian Pacific Monetary Fund (APEC) and the World Bank.

Bisides the currency crisis, the successful economic development has taken a heavy toll on the environment, the cities have become very large and "brown environmental issues" such as air and water pollution are threatening health and sustainable development.

Has the Asian crisis come to an end? Will the Asian Miracle take over again?
Different theories over the rise of the Asian Miracle, the Asian Crisis and the Asian future have emerged. Debates have started on the role of international institutions such as the IMF, the role of banks, the fragility of the financial system and the effects of short-term capital flows.
 

The debate on the future    The New Australian, (1/1998), Paul Krugman and Asia's crisis: another myth is born.      The debat on the role of the IMF     Economist (1998); Kill or cure?     Sachs, Jeffrey (12/97); IMF is a power unto itself    Fischer, Stanley (01/98); The Asian Crisis: A View from the IMF   Human Rights    See Social aspects of the crisis