What name is given to the 1997–1998 market collapse that began in Thailand and spread across East Asia?

The 1997–1998 market collapse that began in Thailand and spread across East Asia is called the Asian financial crisis.

The crisis began when Thailand abandoned the baht’s fixed exchange-rate system on 2 July 1997. The currency rapidly lost value, and investors reassessed other economies whose currencies, banks, and companies carried heavy foreign-currency debts. Stock markets and currencies then fell across Indonesia, South Korea, Malaysia, and the Philippines.

The turmoil was not limited to exchange rates. Companies and banks faced repayment problems because debts denominated in U.S. dollars became much more expensive in local currency. Several governments sought emergency assistance from the International Monetary Fund.

The crisis later contributed to financial stress in Russia and other markets, but the Asian financial crisis and Russia’s 1998 crisis are distinct episodes. The episode also encouraged several East Asian economies to build larger foreign-exchange reserves and strengthen financial regulation.