Part 6/10:

In June of 1997, the Thai crisis began to take form as export growth stagnated and foreign loan burdens turned untenable. Gradually, doubts about the country's currency stability led to panic, ultimately resulting in the release of the Thai Baht's exchange rate and marking the onset of what would become known as the Asian Financial Crisis.

The Ineffectual Response

At the IMF conference held just a few months later in Hong Kong, discussions about further deregulation overlooked the raging storm that was the Thai crisis. The IMF's reluctance to intervene soon cost many lives and livelihoods, as the IMF classified the crisis as purely regional and imposed austerity measures rather than facilitating the stability needed for recovery.