Outside AsiaAfter the Asian crisis, international investors were reluctant to lend to developing countries, leading to economic slowdowns in developing countries in many parts of the world. The powerful negative shock also sharply reduced the price of oil, which reached a low of $8 per barreltowards the end of 1998, causing a financial pinch in OPEC nations and other oil exporters. This reduction in oil revenue contributed to the 1998 Russian financial crisis, which in turn caused Long-Term Capital Management in the United States to collapse after losing $4.6 billion in 4 months. A wider collapse in the financial markets was avoided when Alan Greenspan and the Federal Reserve Bank of New York organized a $3.625 billion bail-out. Major emerging economies Brazil and Argentina also fell into crisis in the late 1990s (see Argentine debt crisis).[35]The crisis in general was part of a global backlash against the Washington Consensus and institutions such as the IMF and World Bank, which simultaneously became unpopular in developed countries following the rise of the anti-globalization movement in 1999. Four major rounds of world trade talks since the crisis, in Seattle, Doha, Cancún, and Hong Kong, have failed to produce a significant agreement as developing countries have become more assertive, and nations are increasingly turning toward regional or bilateral FTAs (Free Trade Agreements) as an alternative to global institutions. Many nations learned from this, and quickly built up foreign exchange reserves as a hedge against attacks, including Japan, China, South Korea. Pan Asian currency swaps were introduced in the event of another crisis. However, interestingly enough, such nations as Brazil, Russia, and India as well as most of East Asia began copying the Japanese model of weakening their currencies, restructuring their economies so as to create a current account surplus to build large foreign currency reserves. This has led to an ever increasing funding for US treasury bonds, allowing or aiding housing (in 2001–2005) and stock asset bubbles (in 1996–2000) to develop in the United States.[edit]See also Financial crisis Financial contagion List of finance topics[edit]Notes1. ^ Kaufman: pp. 195–62. ^ http://www.adb.org/Documents/Books/Key_Indicators/2003/pdf/rt29.pdf3. ^ Pempel: pp 118–1434. ^ The Myth of Asia's Miracle A Cautionary Fable by Paul Krugman.5. ^ Hughes, Helen. Crony Capitalism and the East Asian Currency Financial 'Crises'. Policy. Spring 1999.6. ^ Blustein: p. 737. ^ The Three Routes to Financial Crises: The Need for Capital Controls. Gabriel Palma (Cambridge University). Center for Economic Policy Analysis. November 2000.8. ^ Bernard Eccleston, Michael Dawson, Deborah J. McNamara (1998). The Asia-Pacific Profile. Routledge (UK). ISBN 0415172799.9. ^ FIRE-SALE FDI by Paul Krugman.10. ^ Stiglitz: pp. 12–1611. ^ Joint Comminuque The 30th ASEAN Ministerial Meeting (AMM) The Thirtieth ASEAN Ministerial Meeting was held in Subang Jaya, Malaysia from 24 to 25 July 1997.12. ^ Halloran, Richard. China's Decisive Role in the Asian Financial Crisis. Global Beat Issue Brief No. 24. 27 January 1998.13. ^ Noland: pp. 98–10314. ^ a b IMF's Role in the Asian Financial Crisis by Walden Bello.15. ^ The IMF Crisis Editorial. Wall Street Journal. 15 April 1998.16. ^ http://www.columbia.edu/cu/thai/html/financial97_98.html17. ^ Kaufman: pp. 193–818. ^ Liebhold, David. Thailand's Scapegoat? Battling extradition over charges of embezzlement, a financier says he's the fall guy for the 1997 financial crash. TIME.com. 27 December 1999.19. ^ Pressure from below: Supporters of the new, improved Constitution now have to help turn words into action 10 October 199720. ^ "Japan Stocks Slide Again On Fears About Stability". Wall Street Journal Online. 26 December 1997. Retrieved 2 September 2009.21. ^ http://www.oanda.com/convert/fxhistory August 13 = 2673; August 14 = 2790; August 15 = 2900; August 31 = 2930; October 31 = 3640; December 31 = 5535. Accessed 2009-08-20. Archived 2009-09-04.22. ^ http://www.oanda.com/convert/fxhistory January 31 = 10,100; March 31 = 8,650; May 31 = 11,350; July 31 = 13,250; September 30 = 10,800. Accessed 2009-08-20. Archived 2009-09-04.23. ^ Bayani Cruz, We will hold on to blue-chip shares: Tsang, The Standard, 29 August 1998.24. ^ The CIA World Factbook - Malaysia25. ^ Ngian Kee Jin: p. 1226. ^ Pettis: pp. 55–6027. ^ Pettis: p. 7928. ^ Tiwari: pp. 1–329. ^ a b http://www.adb.org/Documents/Books/Key_Indicators/2001/rt11_ki2001.xls30. ^ a b Cheetham, R. 1998. Asia Crisis. Paper presented at conference, U.S.-ASEAN-Japan policy Dialogue. School of Advanced International Studies of Johns Hopkins University, June 7–9, Washington, D.C.31. ^ Radelet: pp. 5–632. ^ The Asian financial crisis ten years later: assessing the past and looking to the future. Janet L. Yellen. Speech to the Asia Society of Southern California, Los Angeles, California, 6 February 200733. ^ Kilgour, Andrea (1999). The changing economic situation in Vietnam: A product of the Asian crisis?34. ^ Weisbrot: p. 635. ^ The Crash transcript. PBS Frontline.[edit]References