What name is given to the 1997–1998 market turmoil that began with Thailand’s baht devaluation?

The 1997–1998 market turmoil that began with Thailand’s baht devaluation was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate policy on July 2, 1997, allowing the baht to fall sharply. Investors became concerned that other East and Southeast Asian economies also had excessive foreign-currency borrowing, weak financial institutions, and property-market bubbles. Capital rapidly left several countries.

Indonesia, South Korea, Malaysia, and the Philippines experienced severe currency and market pressure. The International Monetary Fund arranged major assistance packages, particularly for Thailand, Indonesia, and South Korea, while governments introduced difficult reforms.

The crisis spread beyond Asia through global financial markets, although its effects differed by country. Hong Kong’s stock-market defense in October 1997 and Russia’s 1998 default added to international anxiety. The episode is sometimes called the Asian financial crisis or Asian contagion, rather than a single-country stock crash.