Part 6/10:
Currency Devaluation: Many countries were forced to devalue their currencies dramatically, leading to inflation and a substantial loss of purchasing power.
Financial Sector Collapse: The crisis exposed critical weaknesses within the financial systems of the affected nations, resulting in widespread insolvency among banks and financial institutions.
Contagion Effect: The crisis transcended borders, affecting not just the initial victims but also creating ripple effects that influenced neighboring economies.
While some nations, like South Korea, experienced a relatively rapid recovery, others faced prolonged economic hardship. Countries such as Thailand and Indonesia struggled to rebound and emerged from the crisis only after implementing significant reforms.