Part 6/8:

The International Monetary Fund (IMF) intervened, mandating austerity measures that restricted government spending and raised interest rates. Critics, including esteemed economist Joseph Stiglitz, highlighted the detrimental impact of IMF policies on Indonesia's economy, suggesting the need for a nuanced understanding of state response during economic crises.

Impact on South Korea and Other Nations

While South Korea initially seemed insulated from the crisis, it later experienced significant challenges, specifically in the latter half of 1997. The bankruptcy of leading conglomerates, known as chaebols, highlighted the systemic risks associated with excessive borrowing, particularly in foreign currencies.