What name is given to the 1997–1998 collapse that began with Thailand’s currency crisis?

The 1997–1998 collapse that began with Thailand’s currency crisis is called the Asian financial crisis.

Thailand abandoned its fixed exchange-rate system and allowed the baht to float on July 2, 1997. The currency then lost substantial value, exposing weaknesses in corporate borrowing, bank balance sheets, and property markets. Pressure spread to Indonesia, South Korea, Malaysia, and other economies.

Many companies and banks had borrowed heavily in foreign currencies while earning revenue in local currencies. When exchange rates fell, the local-currency cost of repayment rose sharply. Investors also reassessed other emerging markets, producing capital flight and stock-market declines.

The crisis was not limited to stock exchanges: currencies, banks, property markets, and employment were all affected. The International Monetary Fund arranged assistance programs for several countries, including Thailand, Indonesia, and South Korea, alongside substantial economic reforms.