The Performance of East Asian Markets upon the 2008 Global Financial Tsunami: Currency Crisis and Banking Crisis

Abstract

The 2008 Global Financial Tsunami severely impacted global economies including the East Asian markets. Coming on the heels of the prolonged 1997 Asian Financial Crisis, economists are keenly interested to compare and contrast these two financial crises. An analysis of foreign exchange and money market pressure indexes indicates that the impact of the 2008 Global Financial Tsunami was far less severe than the 1997 Asian Financial Crisis. Therefore, we anticipate a speedy recovery in East Asian markets. Furthermore, speculative attacks were also less significant during the 2008 Global Financial Tsunami. It is obvious that the nature of the most recent Financial Tsunami was different from that of the Asian Financial Crisis. Our results provide a reference for nations which are going through a financial crisis.