What China Has Seen from the Southeast Asian Monetary Crisis

Abstract

While many explanations have been given for the Southeast Asian monetary crisis, none are adequate, and politicians and academic circles hold differing views. In my opinion, the Southeast Asian monetary crisis may be attributed to two basic causes. The first is speculation. There would have been no crisis if not for speculation. The second is excessive belief in the benefits of deregulation. Therefore, short-term capital frequently found its way into Thailand, and all capital of this nature seeks quick returns. The booming development of the Thai economy to a very large extent acquired impetus from investments of short-term capital. Such economic growth is unstable, and also does not constitute substantial economic growth.