What name describes the 1997–1998 collapse that spread from Thailand through several Asian economies?

The 1997–1998 collapse that spread from Thailand through several Asian economies is called the Asian financial crisis.

Thailand’s government abandoned the baht’s fixed exchange-rate policy on 2 July 1997 after facing intense pressure on its foreign-currency reserves. The baht depreciated sharply, and financial stress spread to Indonesia, South Korea, Malaysia, and other economies. Many firms and banks had borrowed heavily in U.S. dollars, so local-currency depreciation made their debts much more expensive.

The crisis combined fragile banks, high private-sector debt, property speculation, and capital outflows. Investors who had previously treated the region as a unified growth story rapidly withdrew funds from several countries. Stock markets and currencies fell together, while companies and financial institutions struggled with insolvency.

The International Monetary Fund arranged major assistance programs, including packages for Thailand, Indonesia, and South Korea. The episode also encouraged Asian governments to build larger foreign-exchange reserves and reconsider reliance on rigid currency pegs and short-term foreign borrowing.