Part 7/10:
Reforms Post-Crisis
In the aftermath, numerous structural changes were instituted to address the shortcomings exposed during the crisis:
Financial Sector Reforms: Targeting the weaknesses in insolvent banks and financial institutions, countries initiated mergers or closures and implemented stricter regulations and risk management practices.
Market Liberalization: Efforts toward structural reform focused on liberalizing markets and attracting foreign investments while diversifying export bases to reduce reliance on short-term capital.
Exchange Rate Flexibility: Countries began permitting currency depreciation to correct overvaluation issues, thus restoring competitiveness in international trade.