East Asian Crisis 1997 Explained | Banking | Economics (2020)

The East Asian Crisis of 1997 was the worst Financial Crisis in Asia and I fully explain it in this video including:
👉 What is Balance of Payments (BOP), Balance of Trade (BOT)?
👉 What is Currency Peg and Fixed Exchange Rate?
👉 What actually happened during the East Asian Financial Crisis?
👉 Why did this crisis happen?
👉 Who was Dr. Mahathir Mohamad?
👉 What did we learn from the East Asian Financial Crisis?
👉 Why was the decision of India and RBI (Reserve Bank of India) proved right because of this crisis?
Many videos are available on the East Asian Financial Crisis of 1997 but none have explained it in so much detail as you will see in this video. You will learn about the core concepts of exports and imports and how countries manipulate their exchange rates to attain economic goals. This crisis was the worst Asian Financial crisis in history and you will learn exactly what factors led to this happening and what we learnt about this crisis. I talk about Dr. Mahathir Mohamad and about how Malaysia and Indonesia handled this crisis in different ways and how Thailand went through it. I also go into how India was shielded from this crisis and why we should be thankful to India's Central Bank the RBI for protecting every Indian from the contagion effects of the East Asian Crisis 1997.
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[@jonswanson7766]

Thank you for your presentation. I was wondering if you had read "Princes of the Yen" chapter 17. Professor Werner gives a step by step view of a takedown by those who wished to "crack open" the East Asian economies to buy up assets at pennies on the dollar. DW also did a good job of showing IMF involvement. Cheers, brother!

[@sameerkadam3849]

your videos explain not only the main issue but also the underlying economics behind it, thank you so much for this!

[@SupriyoPanda]

Glad you enjoyed it Sameer!

[@rabtehdummy2052]

Thank you very much for the video! I normally have trouble concentrating in other videos related to this topic but you've explained so well that I was fully engrossed the entire video.

[@triciaswan8255]

Thank you for explaining this - you made an incredibly complex subject understandable. I really appreciate your efforts. 🙏🙏

[@dhirajpoonja3017]

had to do an essay on this topic, and I'd been looking for a clear explanation for weeks, but this was so helpful i finally understand what happened especially in regards to the foreign reserves, thank you so much!!

[@jasonjonathan1337]

Good job! The explanation is brief and clear as well. Waiting for more videos soon

[@ciaoitalo]

Thank you for making this!

[@zubiyamoin6289]

Brilliant explanation, well researched

[@peters972]

Best explanation of that crisis I have seen on KZbin. Great work!

[@SupriyoPanda]

Glad you think so! I'm stoked that it helped you!! :)

[@srikar5781]

Please keep doing the content sir. We need you. Especially for the non-economy background students.

[@deepthakkar8333]

Awesome video!!. Thanks a lot, Supriyo.

[@SupriyoPanda]

Most welcome!

[@sumerafarheen2647]

Very well explained😊

[@mk-su9bm]

Very nice report

[@irawanbudi]

I was experiencing this crisis firsthand. Thank you for explaining it.

[@cromatab3298]

Sir can you pls tell how the thai bhat depreciated? Thailand never held forex instead supplied dollars to the economy. So naturally there would have been no demand for dollars but how did thai baht depreciate?

[@juweriyyahmansuri8022]

Thank You for breaking it in smaller parts and then explaining it with Indian context. Enjoyed it.

[@SupriyoPanda]

My pleasure 😊

[@theoxymoxy]

Very informative, Supriyo! Hope you keep posting! :)

[@SupriyoPanda]

Thank you, I will!

[@sravyap7696]

Your channel always has the simplest explanations sir, thanks a lot for making this topic so easy to understand 😊

[@SupriyoPanda]

Happy to help Sravya! My channel will always be aimed at simplifying complex concepts! Keep watching and learning!

[@rojamallareddy471]

Thank you , for such great information it helped me lot .

[@SupriyoPanda]

You are welcome!

[@ku810204]

A shoutout from Taiwan! this vid is amazing - very detailed and easy to understand

[@SupriyoPanda]

Glad you enjoyed it Kai!

[@chanakyaniti2883]

Jai Shree ram

[@anthonymurrell4667]

Thank you!

[@shakeelsheikh8597]

We have to make supply side strong ist and some reforms related to investment so that foreign investment in fdi is more as compared to fpi. Only then we can go for capital account convertiblity. Nice explanation.

[@IrfanKhan-xj1ok]

Nice explanation sir, thank you

[@SupriyoPanda]

You're welcome Irfan!

[@miguelembuido6170]

Great explanation of the AFC

[@SupriyoPanda]

Glad you liked it!

[@sudipshettynoojjis7851]

Very good.... God bless you and your family

[@SupriyoPanda]

Thank you! You too!

[@twinkle_star5864]

Thanks a lot sir.🤗🤗🤗🤗

[@oscarvillada5718]

Hey what sources did you cite? like all those pictures you pulled up

[@qwertyuiop9060]

Your videos and content are really good bro. Learn how to edit videos. If you make your videos more animated, youll get a hell of a lot more views

[@abhishekkumartiwary4116]

may i know which instrument is being used by you here?

[@mahendrakhadse2475]

Thankyou sir.. We want more.. We want more☺

[@SupriyoPanda]

More videos coming soon Mahendra, thanks for your support & encouragement!

[@mwaleed2082]

Sir at 11:17, what's the cause of negative deficits? Does it mean the amount of dollars exiting the country is > than what's coming in? If this is correct, what caused this "capital flight"? People, investment banks and foreign governments were very much confident in these economy's stabilities, and suddenly they lost so much faith that they withdrew that much amount?

[@radhukrishna8354]

Is it possible for me to get the notes shown in the video

[@mwaleed2082]

What is capital account convertibility sir? What is free capital flow?

[@nishanthbanga1619]

sir, if the value of the home currency should be appreciated, should the govt buy forex or sell forex?

[@binitagarwal6522]

Sir could you share the pdf file? Or the source of this file?

[@umangduttpathak2048]

Good work kindly provide these pdfs too if possible

[@mcom18darshudhillon82]

Sir can you tell me that you said,,that there were trade deficit eventhough their export were more 🙄

[@selvakumar-nl5kh]

THANK YOU SIR.

[@SupriyoPanda]

You're welcome :)

[@prathameshrane7607]

Where does RBi sell dollars...in international or domestic market in case of shortage of dollars ?

[@nataliataka702]

Thanksss

[@Yousafkhan-ev6ce]

Can I explain like you in presentation asian currency crisis

[@simonsimon2888]

He who goes 'a-borrowing, goes a-soroing'....

[@cromatab3298]

Sir can you pls tell how the thai bhat depreciated? Thailand never held forex instead supplied dollars to the economy. So naturally there would have been no demand for dollars but how did thai baht depreciate? If thai bhat depreciated it was good bcoz it was export based economy

[@jonswanson7766]

Any time you use a foreign currency for domestic purposes, you are leaving yourself open to the possibility of having a problem paying the interest if the dollar tightens. No need to borrow foreign currency, because your Central Bank can create baht out of thin air to support local business and banks during times of stress, which is what Central Banks are supposed to do!!!!. Thailand Central Bank could not create dollars! Therefore they eventually had to give up on their "promise" to maintain the baht/dollar enchange.

[@binislam2807]

Thank brother. I am making presentation on Asian crisis in Germany.

[@SupriyoPanda]

All the best brother! :)

[@hiteshkumargarg1391]

Great

[@SupriyoPanda]

My pleasure! 👍👍

[@poojakashyap6279]

Pdf plz

[@BhanuPrakashEnagadapa]

please Explain 2008 crisis also??

[@SupriyoPanda]

coming soon!

[@UllahMohd]

👌

[@SupriyoPanda]

💪💪👍👍

[@adaozen5437]

u teach great! i have a q: why asian countries except india keep a peg in the past? is it bc not-enough-liberalism? also i certainly agree w your stance over turkish lira's depreciation (i am from turkey) our central bank is a literal toy in our govt. HOW SHOULD THEY STABILIZE THE CAPITAL ACCOUNT? i am very curious bout ur answer.. THANK U :))))

[@SupriyoPanda]

Thanks for the kind words Ada! Asian countries used to peg the currency mainly to stabilize trade. If you want to sell services at a cheap cost what do you do? you keep your currency weak vis-a-vis the dollar by artificially pegging it. This strategy works very well if you have enough dollars with you to manage it. Cheap exports help to keep the dollars coming in and since you have pegged the currency foreign investors are less wary. But if due to external events this balance is disrupted you get a crisis like it happened in 1997. For the Turkish question- the main problem here was not the capital account, the crisis was caused due to a current account deficit (CAD). Basically lots of foreign investors invested in the stock markets, real estate and construction sectors. Due to policy missteps all these sectors were badly affected and severe foreign capital outflow began to happen. This led to a worsening CAD. The best way to avoid this in the future is to help small businesses get easier access to loans and reduce inflation. Also, export subsidies can help to reduce the CAD. India too, runs a high CAD due to our vast oil imports and like Turkey we need to manage it as well. Hope this helps! have a nice day :)

[@adaozen5437]

@@SupriyoPanda you put it out very well, thx 4 that. Im also wondering: Have you got an information about the economic policies few decades after the nation was founded? The problem with CAD may have started than due to unstable econ policies. Also our president n the head of CB fluctuates the interest rates whenever they want. I get that the hand of a nation should be recquired from time 2 time but in our case, can that much of intervention b helpful at all? Thanks for responding 2 me quickly! :)

[@SupriyoPanda]

@@adaozen5437 As far as I have read Ataturk's policies were very progressive and he changed a few of the Ottoman empire's "etatic" rules (total control by state). But economic policies were heavily influenced by other factors and later under Erdogan they became much more stringent. In case of Turkey most economists believe that independence of CB has been compromised and that is why economic upheavals have happened. If you want to discuss this more in detail send me an email (contact link is in description) or message me on Instagram. I think bottomline is that too much intervention does more harm than good. Time and again we have seen why its better to leave things to market forces rather than try to exert govt control.

[@jonswanson7766]

​@@SupriyoPanda thank you so much for your efforts, I must say that Professor Werner would have a different view as to the desirability of Central Banks being "independent" when the manufactured crisis gives the Central Banks more power time after time! There's always a real estate bubble, they entice with lower interest rates and then when the dollar recovers they can dictate terms of surrender! I often comment on other channels that India was SMART not to fall into the trap!

[@vishalranganatha1293]

Who is here after watching "Forgotten" Netflix movie

[@pirateit5835]

Me

[@akshaygabhane7365]

maja nhi aaya

[@kyahsz198]

Thank you!

[@SupriyoPanda]

My pleasure! :)