What was the name of the 1997–1998 crisis that began in Asian financial markets and spread worldwide?

The 1997–1998 crisis that began in Asian financial markets and spread worldwide was the Asian financial crisis.

The crisis began in Thailand in July 1997, when the country abandoned its fixed exchange-rate policy and allowed the baht to float. The currency depreciated sharply, and financial pressure spread to Indonesia, South Korea and other economies. Stock markets fell as investors withdrew capital and companies struggled with foreign-currency debt.

Many affected countries had experienced rapid growth, substantial borrowing and property or asset booms. Fixed or tightly managed exchange rates encouraged borrowing in dollars, but falling currencies made those debts much harder to repay.

The International Monetary Fund arranged rescue programs for Thailand, Indonesia and South Korea. Russia later defaulted on domestic debt in 1998, and the turmoil contributed to the failure of Long-Term Capital Management, showing how a regional crisis could affect global finance.