What name is commonly given to the 1997 financial crisis that began with Thailand’s baht devaluation?

The 1997 financial crisis that began with Thailand’s baht devaluation is commonly called the Asian financial crisis.

On July 2, 1997, Thailand abandoned its fixed exchange-rate system and allowed the baht to float. The currency then lost much of its value, exposing weaknesses in heavily indebted banks and companies. Investors reassessed other economies with large foreign-currency debts, property bubbles, and vulnerable financial systems.

The turmoil spread to Indonesia, South Korea, Malaysia, and the Philippines, while stock markets and currencies across the region fell sharply. Indonesia experienced especially severe political and economic disruption. The crisis also affected Russia and other emerging markets, although each country’s problems had distinct causes.

The International Monetary Fund arranged major assistance programs, particularly for Thailand, Indonesia, and South Korea. The episode is not the same as the worldwide 2008 financial crisis, which began in the U.S. housing and credit markets.